X Company has two production departments, A and B. At the start
of 2018, the following budgeted cost information was
available:
| Overhead | |
| Department A | $550,000 |
| Department B | $220,000 |
The following activity information is for X Company's only two
jobs, Job 11 and Job 22, both of which were started and completed
during the year:
| Job 11 | Job 22 | |||
| Direct labor hours in Department A | 1,780 | 732 | ||
| Direct labor hours in Department B | 492 | 1,290 | ||
| Machine hours in Department A | 2,180 | 2,480 | ||
| Machine hours in Department B | 1,600 | 1,560 | ||
Using a departmental allocation system with direct labor hours as
the cost driver in Department A and machine hours as the cost
driver in Department B, what was the allocation to Job 22 [round
overhead rate(s) to two decimal places]?
| Department | overhead | job 22 |
| A | 550,000 | 160,270.70 (550,000 × 732 / 2512) |
| B | 220,000 | 108,607.60 (220,000 × 1,560 / 3,160) |
| Total allocation to job 22 |
268,878.3 |
X Company has two production departments, A and B. At the start of 2018, the following...