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

Question

Webster

Business

20 June, 22:58

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

+3

Answers (1)

Know the Answer?

Keegan Nicholson · Answer 1

Allocated overhead = $45

Explanation:

Allocated overhead = Overhead absorption rate * hours required

Machining = 4 hours * $6 = $24

Sanding = 1 * $15 = $15

Painting = 2 * $3 = $6

Overhead allocated - = $24 + $15 + $6 = $45

Allocated overhead = $45