This Question: 3 pts 17 of 22 (16 This Test: 50 pts possible in Lucas Industries

ID: 2399130 • Letter: T

Question

This Question: 3 pts 17 of 22 (16 This Test: 50 pts possible in 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 $50 per machine hour, while the Sanding Department uses a departmental overhead rate of $10 per direct labor hour. Job 542 used the following direct labor hours and machine hours in the two departments: Sanding Department Actual results Direct labor hours used Assembly Department 10 12 The cost for direct labor is $20 per direct labor hour and the cost of the direct materials used by Job 542 is $1,300. What was the total cost of Job 542 if Lucas Industries used the departmental overhead rates to allocate manufacturing overhead? O A. $2,500 O B. $1.640 O c. $2,310 O D. $1,660

Explanation / Answer

Correct Answer (C ) $ 2310

Calculation of Total cost of Job 542

Direct Material

$ 1,300.00

Direct Labor

(17*20)

$ 340.00

Overheads Assembly Department

(12*50)

$ 600.00

Overheads Sanding Department

(7*10)

$ 70.00

Total Cost

$ 2,310.00

Notes