Alpha Beta
Manufacturing overhead $240,000 $300,000
Units 10,000 20,000
Direct labor hours 6,000 7,500
Direct Labor cost 60,000 75,000
Material cost $150,000 $400,000
At the end of the year, Alpha Co. had incurred overhead of $221,000 and had produced 9,800 units using 6,100 ($61,00) direct labor hours and materials costing $147,000.
Beta inc. had incurred overhead of $316,500 and had produced 20,500 units using 7,550 ($75,500) direct labor hours and materials costing $411,000.
Required
A. Compute the (a) budget and (b) actual manufacturing overhead cost rates.
B. What is the job cost of the Alpha Co. and Bate Inc. using (a) normal costing and (b) actual costing?