Laudermilk produces dairy equipment. Most of its jobs have a number of units per job. The company has two different departments through which all jobs pass. Overhead is applied using a plantwide rate of $13 per direct labor hour. Direct Labor wages average $8 an hour. Data for Job #3 for the year is:
Direct Materials $40,000
Direct Labor Costs
Dept. A 60,000
Dept. B 12,000
Machine hours used
Dept. A 200
Dept. B 2,400
Units Produced 20,000