Question

Company

a) Dept. A
b) Dept B.
Predetermined overhead rate per direct labor hour
a) $2.10
b) $2.40
c) $1.80
Direct labor hours hours worked on Job ABC
a) 30
b) 17
c) 13
Based on this information, the overhead applied to Job ABC using multiple predetermined overhead rates is:
a) $64.20.
b) $72.00.
c) $54.00.
d) $63.00.

Answer 1

To calculate the overhead applied to Job ABC using multiple predetermined overhead rates, each department's hours are multiplied by its overhead rate, then summed. The correct total overhead applied to Job ABC is $127.20, which is not one of the provided options.

Step-by-step explanation:

The question involves calculating the overhead applied to Job ABC using multiple predetermined overhead rates. To do this, we will multiply the direct labor hours worked on Job ABC in each department by the respective predetermined overhead rate for each department.

• For Dept. A: 30 hours × $2.10 per hour = $63.00
• For Dept. B: 17 hours × $2.40 per hour = $40.80
• For Dept. C: 13 hours × $1.80 per hour = $23.40

Adding these amounts gives us the total overhead applied to Job ABC, which is $63.00 + $40.80 + $23.40 = $127.20. Therefore, none of the provided options (a, b, c, d) are correct. The total overhead applied to Job ABC is $127.20.