Business, 11.05.2021 19:30 katelynndonahue2393

Lucas Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments: Assembly and Sanding. The Assembly Department uses a departmental overhead rate of $50 per machine hour, while the Sanding Department uses a departmental overhead rate of $25 per direct labor hour. Job 603 used the following direct labor hours and machine hours in the two departments: Assemly Department Sanding Department
Direct labor hours used 7 4
Machine hours used 11 9

The cost for direct labor is $30 per direct labor hour and the cost of the direct materials used by Job 603 is $1,400. How much manufacturing ovehead would be allocated to Job 603 using the departmental overhead rates?

a. $610
b. $330
c. $580
d. $740

Answers: 1

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Lucas Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. Th...