Xcompany has two production departments, a and b. at the start of 2018, the following budgeted cost information was available: overhead : department a : $390,000, department b $190,000 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 1,646 732, direct labor hours in department b 274 1,186 machine hours in department a 2,000 2,580, machine hours in department b 1,660 1,460 using a departmental allocation system with machine hours as the cost driver in department a and direct labor hours as the cost driver in department b, what was the allocation to job 11 [round overhead rate(s) to two decimal places]?

Instructions are listed below

Explanation:

Giving the following information:

Overhead :

Department A : $390,000

Department B $190,000

Job 11:

Direct labor hours in Department B 274

Machine hours in Department A 2,000

Job 22:

Direct labor hours in Department B 1,186

Machine hours in Department A 2,580

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base=

Department A= 390,000/(2000 + 2580)= $85.15 per direct machine hour

Department B= 190,000/(274 + 1186)= $130.14 per direct labor hour.

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Job 11:

Dept A= 85.15*2580= $219,687

Dept B= 130.14*274= $36,658.36

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