Bond Industries Uses Departmental Overhead Rates to Allocate Its Manufacturing

question 165

Multiple Choice

Bond 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 $20 per machine hour,while the Sanding Department uses a departmental overhead rate of $15 per direct labor hour.Job 542 used the following direct labor hours and machine hours in the two departments: $$\begin{array} { | l | c | c | } \hline \text { Actual results } & \begin{array} { c } \text { Assembly } \\\text { Department }\end{array} & \begin{array} { c } \text { Sanding } \\\text { Department }\end{array} \\\hline \text { Direct labor hours used } & 4 & 3 \\\hline \text { Machine hours used } & 9 & 5 \\\hline\end{array}$$ The cost for direct labor is $25 per direct labor hour and the cost of the direct materials used by Job 542 is $1,200.
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How much manufacturing overhead would be allocated to Job 542 using the departmental overhead rates?

• A)$125
• B)$175
• C)$225
• D)$245

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