Splitsville Company has two departments. Factory overhead costs are applied based on direct labor cost in Department A and machine hours in Department B. The following information is available:...

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Splitsville Company has two departments. Factory overhead costs are applied based on direct labor cost in Department A and machine hours in Department B. The following information is available:



Budgeted Items Dept. A Dept. B



Direct labor cost $180,000 $165,000



Machine hours 51,000 40,000



Factory overhead cost $225,000 $180,000



Actual data for Job #10 are as follows:



Actual Items Dept. A Dept. B



Direct materials requisitioned $10,000 $16,000



Direct labor cost $11,000 $14,000



Machine hours 5,000 3,000



Required:



A) Compute the budgeted factory overhead rate for Department A.



B) Compute the budgeted factory overhead rate for Department B.



C) What is the total overhead cost for Job #10?



D) If Job #10 consists of 50 units of product, what is the unit cost of this job?



Answered Same DayDec 24, 2021

Answer To: Splitsville Company has two departments. Factory overhead costs are applied based on direct labor...

David answered on Dec 24 2021
125 Votes
Answer (A):
Answer (A):
$225,000/$180,000 = 125%
Answer (B):
$180,000/40,000 hrs. = $4.50 per ho
ur
Answer (C):
($11,000 x 125 percent) + ($4.50 x 3,000 hrs.) = $27,250
Answer (D):
$10,000 + $16,000 + $11,000 + $14,000 + $27,250 = $78,250/50 units = $1,565 per unit.
So divide each of the...
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