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Lucas Industries Uses Departmental Overhead Rates to Allocate Its Manufacturing

question 55

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Lucas Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments: Assembly and Sanding. The Assembly Department uses a departmental overhead rate of $60 per machine hour, while the Sanding Department uses a departmental overhead rate of $30 per direct labor hour. Job 603 used the following direct labor hours and machine hours in the two departments: Lucas Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments: Assembly and Sanding. The Assembly Department uses a departmental overhead rate of $60 per machine hour, while the Sanding Department uses a departmental overhead rate of $30 per direct labor hour. Job 603 used the following direct labor hours and machine hours in the two departments:   The cost for direct labor is $35 per direct labor hour and the cost of the direct materials used by Job 542 is $1500. What was the total cost of Job 542 if Lucas Industries used the departmental overhead rates to allocate manufacturing overhead? A) $2060 B) $2820 C) $2745 D) $2025 The cost for direct labor is $35 per direct labor hour and the cost of the direct materials used by Job 542 is $1500.
What was the total cost of Job 542 if Lucas Industries used the departmental overhead rates to allocate manufacturing overhead?


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