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ABC Corp produces product A from its two producing departments. Dept A and Dept B have budgeted overhead of 1,000,000 and 2,000,000, respectively. Budgeted DL hours are 50,000 hrs and 40,000 hrs for A and B, respectively. Dept A has actual DL cost of 200,000 (DL rate of 100 per hr) and Dept B has 300,000 (at 150 rate per hr). DM used is 220,000. Using departmental OH rate, what is the total mfg cost?

ABC Corp produces product A from its two producing departments. Dept A and Dept B have budgeted overhead of 1,000,000 and 2,000,000, respectively. Budgeted DL hours are 50,000 hrs and 40,000 hrs for A and B, respectively. Dept A has actual DL cost of 200,000 (DL rate of 100 per hr) and Dept B has 300,000 (at 150 rate per hr). DM used is 220,000. Using departmental OH rate, what is the total mfg cost?

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 1PA: Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the...
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ABC Corp produces product A from its two producing departments. Dept A and Dept B have budgeted overhead of 1,000,000 and 2,000,000, respectively. Budgeted DL hours are 50,000 hrs and 40,000 hrs for A and B, respectively. Dept A has actual DL cost of 200,000 (DL rate of 100 per hr) and Dept B has 300,000 (at 150 rate per hr). DM used is 220,000. Using departmental OH rate, what is the total mfg cost?

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