Question: The Polish Factory manufactures natural resources in Ireland. At the beginning of 20XX, the accountant provided the following estimates associated with Department A and Department B for the coming year:
According to the reports provided by the manager at the Polish Factory, the following data was presented to represent a job that was completed during the year:
|
|
Department A
|
Department B
|
|
Direct labor hours
|
150
|
80
|
|
Machine-hours
|
50
|
8
|
|
Direct material cost
|
$275
|
$180
|
|
Direct labor cost
|
$75
|
$350
|
Assume that the Polish Factory uses departmental cost driver rates to allocate manufacturing overhead to products. The manufacturing overhead costs are allocated on the basis of machine-hours in Department A on the basis of direct labor-hours in Department B.
Required: Please help me, and show work.
Q1. Compute the annual manufacturing cost-allocation rate for Department A.
Q2. What amount of overhead should be allocated to the job?
Q3. What are the total manufacturing costs associated with the job?
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