Leonard Industries Uses Departmental Overhead Rates to Allocate Its Manufacturing

question 84

Essay

Leonard Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs.The company has two departments: Building and Inspection.The Building Department uses a departmental overhead rate of $18 per machine hour,while the Inspection Department uses a departmental overhead rate of $15 per direct labour hour.Job 611 used the following direct labour hours and machine hours in the two departments:

The cost for direct labour is $25 per direct labour hour and the cost of the direct materials used by Job 611 is $1,500.
What was the total cost of Job 611 if Leonard Industries used the departmental overhead rates to allocate manufacturing overhead?

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Definitions:

Draft Inequities

Draft inequities refer to unfairness and disparities in the conscription processes, often highlighting socioeconomic, racial, or ethnic inequalities in who is selected for military service.

Red Guards

Youth militant groups that formed a significant part of the Chinese Cultural Revolution, known for their fierce loyalty to Chairman Mao.

Cultural Revolution

A sociopolitical movement in China from 1966 to 1976 initiated by Mao Zedong to uphold communist ideology by removing capitalist, traditional, and cultural elements from Chinese society.

Chinese

Refers to anything related to China, its people, culture, or language.