Global CO had the subsequent at the end of the year-
Department A Department B Plant Total
Direct Material cost $338,000 $23,500 $361,500
Direct labor cost 318,000 $110,000 $ 428,000
Department Overhead $276,000 $480000 $756000
direct labor hours 30000 10000 40000
Machine Hrs 2000 40000 42000
the base for department A is direct labor and the base for department B is machine hours. Evaluate the overhead rates for Dept A and B below
Department A $318,000/30,000= $10.60ph Evaluate what is the overhead rate?
Department B $110/10,000= $11.00 ph find what is the overhead rate?
During the year, job 123 a firm fixed price contract for production of 3,000 raincoats will be started and completed. Evaluate the contract cost using the rates is in question 1 and the subsequent information
Material cost totaled $3,200 for Department A and Department B $740.00
Direct labor hours 240 for Department A and Department B 80
Machine hours totaled 120 for Department A And department B 300