Question

The following information is available pertaining to Bonita Division, that uses a plant-wide overhead rate based on machine hours: Mixing Dept. Finishing Dept. Total Overhead $30,000 $60,000 $90,000 Direct labor-hours 7,500 2,500 10,000 Machine-hours 2,500 7,500 10,000 Production information pertaining to Job 101: Mixing Dept. Finishing Dept. Total Prime costs $5,000 $0 $5,000 Direct Labor-hours 250 0 250 Machine-hours 10 10 20 Units produced 500 0 500 What are the total overhead costs assigned to Job 101

Answer 1

$180

Step-by-step explanation:

Calculation for What are the total overhead costs assigned to Job 101

Using this formula

Total overhead costs assigned to Job 101=(Total Overhead/Total Machine-hours)*Machine-hours

Let plug in the formula

Total overhead costs assigned to Job 101 = ($90,000/10,000) *20

Total overhead costs assigned to Job 101=9*20

Total overhead costs assigned to Job 101=$180

Therefore Total overhead costs assigned to Job 101 will be $180