Machining: 4 hours (all automated)
Sanding: 1 hour (all direct labor)
Painting: 2 hours (including dry time of 1.5 hours)
The company uses departmental overhead rates. Overhead is allocated at the rate of $6/direct labor hour in Sanding, and $15/machine hour in Machining. Painting overhead is allocated on the basis of total time in the department and is allocated at a rate of $3/hour.
How much overhead is allocated to the job?
a. $78
b. $67.50
c. $45
d. $72
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