Answer the Following Questions Using the Information Below:
Bauer Manufacturing

question 131

Multiple Choice

Answer the following questions using the information below:
Bauer Manufacturing uses departmental cost driver rates to allocate manufacturing overhead costs to products. Manufacturing overhead costs are allocated on the basis of machine-hours in the Machining Department and on the basis of direct labor-hours in the Assembly Department. At the beginning of 20X3, the following estimates were provided for the coming year:
$\begin{array}{lrr}&\text { Machining }&\text { Assembly }\\\text { Direct labor-hours } & 30,000 & 60,000 \\\text { Machine-hours } & 80,000 & 20,000 \\\text { Direct labor cost } & \$ 500,000 & \$ 900,000 \\\text { Manufacturing overhead costs } & \$ 420,000 & \$ 240,000\end{array}$ The accounting records of the company show the following data for Job #316:
$$\begin{array} { l r r } & \text { Machining } & \text { Assembly } \\\text { Direct labor-hours } & 120 & 70 \\\text { Machine-hours } & 60 & 5 \\\text { Direct material cost } & \$ 300 & \$ 200 \\\text { Direct labor cost } & \$ 100 & \$ 400\end{array}$$
-What amount of manufacturing overhead costs will be allocated to Job #316?

• A) $439
• B) $502
• C) $595
• D) $532

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Definitions:

Chronological Diary

A record of events or transactions arranged in the order of time occurrence, often used for maintaining personal or financial information.

Economic Events

Transactions and occurrences that affect the financial position of an organization, which can be measured and recorded.

Internal Users

Individuals within an organization, such as management and employees, who use financial and other company information for decision-making purposes.

Accounting Data

Information related to financial transactions and events which are used in the preparation of financial statements.