job order costing 458718

Manufacturing support costs have to be allocated as per their cost driver.. It is mentioned in the question that machining department uses machine hours to allocate manufacturing support cost whereas finishing department uses direct labor cost..

So, for machining department, cost driver rate would be Total manufacturing support cost/Total machine hours i.e. $350,000/14,000 = $25 per machine hour.

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For finishing department, cost driver rate would be Total manufacturing support cost/total direct labor cost i.e. $280,000/$350,000 = $0.8 per $ 1 of direct labor cost

job 101:

machining dept finishing dept

direct mtls cost 8000 1400

direct labor cost 250 800

direct labor hours 7 35

machine hours 50 6

determine total cost for job 101

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