Huang Aerospace Corporation manufactures aviation control panels in two departme

Question

Huang Aerospace Corporation manufactures aviation control panels in two departments, Fabrication and Assembly. In the Fabrication department, Huang uses a predetermined overhead rate of $30 per machine-hour. In the Assembly department, Huang uses a predetermined overhead rate of $12 per direct labor-hour. During the current year, Job #X2984 incurred the following number of hours in each department:

What is the total amount of manufacturing overhead that Huang should have applied to Job #X2984 during the current year?

$1,200

$1,500

$1,560

$1,734

Explanation / Answer

The total amount of manufacturing overhead that Huang should have applied to Job #X2984 during the current year =  ($30 per machine-hour * 40 Machine Hours ) + ( $12 per direct labor-hour * 25 Direct Labor Hours)

= $ 1,500

Hence the correct answer is $ 1,500

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