Splitsville Company has two departments. Factory overhead costs are applied based on direct labor cost in Department A and machine hours in Department B. The following information is available:
Budgeted Items Dept. A Dept. B
Direct labor cost $180,000 $165,000
Machine hours 51,000 40,000
Factory overhead cost $225,000 $180,000
Actual data for Job #10 are as follows:
Actual Items Dept. A Dept. B
Direct materials requisitioned $10,000 $16,000
Direct labor cost $11,000 $14,000
Machine hours 5,000 3,000
Required:
A) Compute the budgeted factory overhead rate for Department A.
B) Compute the budgeted factory overhead rate for Department B.
C) What is the total overhead cost for Job #10?
D) If Job #10 consists of 50 units of product, what is the unit cost of this job?
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