Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 18 Aug 2017 My Price 9.00

Mitchell's Softball Gloves Company

Figure 5-3.
Mitchell's Softball Gloves Company estimated the following at the beginning of the year:

 

Assembly Department

Testing Department

Total

Overhead

$570,000

$130,000

$700,000

Direct Labor Hours

142,500

32,500

175,000

Machine Hours

32,000

65,000

97,000
       


Mitchell uses departmental overhead rates. In the assembly department, direct labor hours are used to apply overhead. Machine hours are used to apply overhead in the testing department.

Actual data for August is as follows:

 

Assembly Department

Testing Department

Total

Overhead

$42,000

$12,000

$54,000

Direct Labor Hours

13,500

2,430

15,930

Machine Hours

4,020

11,000

15,020
       

Refer to Figure 5-3. Mitchell decides to continue using departmental overhead rates. If a job spends 4 hours in assembly and 3 hours in testing, what is the amount of overhead charged to the job?

   

$22
   

$20
   

$28
   

$50.54
   

none of these

 

Answers

Maurice Tutor
(5)
Status NEW Posted 18 Aug 2017 05:08 PM My Price 9.00

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