The Braveheart Corporation Uses Departmental Overhead Rates to Allocate Its

question 72

Essay

The Braveheart Corporation uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments: cutting and painting. The Cutting Department uses a departmental overhead rate of $12 per machine hour, while the Painting Department uses a departmental overhead rate of $17 per direct labour hour. Job 422 used the following direct labour hours and machine hours in the two departments:

The cost for direct labour is $20 per direct labour hour and the cost of the direct materials used by Job 422 is $800.
Required: What was the total cost of Job 422 if the Braveheart Corporation used the departmental overhead rates to allocate manufacturing overhead?

Recognize the characteristics and disadvantages of bureaucracy in organizations.

Understand the concepts of differentiation, integration, centralization, and decentralization in organizational structure.

Understand the role and definition of vendors within QBO.

Navigate and utilize the various onscreen forms in QBO for vendor and expense management (Check form, Expense form, Pay Bills form).

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Definitions:

Straight-Line Method

A depreciation technique that allocates an equal amount of the asset's cost to each year of its useful life.

Semiannually

Occurring twice a year; a term often used to describe the payment schedule of interest or dividends.

Amortization of Discount

The gradual reduction of a bond discount over its life, affecting the issuer's interest expense and balance sheet.