Question - Randolph Company has two departments (Department A and Department B) for Job #111. As cost drivers used to apply overhead to products, the Department A uses machine-hours and the Department B uses direct labor-hours. The following estimates were provided for 2018 at the beginning of the year.
|
|
Department A
|
Department B
|
|
Direct labor-hours
|
30,000
|
60,000
|
|
Machine-hours
|
80,000
|
20,000
|
|
Direct labor cost
|
$500,000
|
$900,000
|
|
Manufacturing overhead costs
|
$420,000
|
$240,000
|
The accounting records of the company show the following data for Job #111 for January:
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|
Department A
|
Department B
|
|
Direct labor-hours
|
120
|
70
|
|
Machine-hours
|
60
|
5
|
|
Direct material cost
|
$300
|
$300
|
|
Direct labor cost
|
$500
|
$400
|
What is the amount of overhead costs allocated to Job#111 on the basis of job-order costing system?