Answered

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Apple Valley Corporation uses a job cost system and has two production​ departments, A and B. Budgeted manufacturing costs for the year​ are:

Department A Department B
Direct materials ​$800,000 ​$120,000
Direct manufacturing labor ​$200,000 ​ $200,000
Manufacturing overhead ​$400,000 ​$500,000

The actual material and labor costs charged to Job​ #432 were as​ follows:

Total
Direct​ materials: ​$21,000
Direct​ labor:
Department A $11,000
Department B ​ $7,000
​$18,000

Apple Valley applies manufacturing overhead costs to jobs on the basis of direct manufacturing labor cost using departmental rates determined at the beginning of the year.

For Department A, the manufacturing overhead allocation rate is: _________
For Department B, the manufacturing overhead allocation rate is: _________
Manufacturing overhead costs allocated to Job #432 total: _________

Sagot :

ayokenny2001

Answer:

See below

Explanation:

1. manufacturing overhead allocation rate for department A

= (Manufacturing overhead department A/Manufacturing direct labor department A) × 100

= ($400,000/$200,000) × 100

= 200%

2. Overhead allocation rate for department B

= ($500,000/$200,000) × 100

= 250%

3. Manufacturing overhead cost allocated to job #432.

($11,000 × $400,000)/$200,000 + ($7,000 × $500,000)/$200,000

= $22,000 + $17,500

= $39,500

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