Huang Aerospace Corporation manufactures aviation control panels in two departments, Fabrication and Assembly. In the Fabrication department, Huang uses a predetermined overhead rate of $30 per machine-hour. In the Assembly department, Huang uses a predetermined overhead rate of $12 per direct labor-hour. During the current year, Job #X2984 incurred the following number of hours in each department: Fabrication Assembly Machine-hours: 40 12Direct labor-hours: 3 25What is the total amount of manufacturing overhead that Huang should have applied to Job #X2984 during the current year? a. $1,200b. $1,500c. $1,560d. $1,734

Question

Parker Winters

Business

31 March, 04:08

Huang Aerospace Corporation manufactures aviation control panels in two departments, Fabrication and Assembly. In the Fabrication department, Huang uses a predetermined overhead rate of $30 per machine-hour. In the Assembly department, Huang uses a predetermined overhead rate of $12 per direct labor-hour. During the current year, Job #X2984 incurred the following number of hours in each department: Fabrication Assembly Machine-hours: 40 12Direct labor-hours: 3 25What is the total amount of manufacturing overhead that Huang should have applied to Job #X2984 during the current year? a. $1,200b. $1,500c. $1,560d. $1,734

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Answers (1)

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Evan Shah · Answer 1

b. $1,500

Explanation:

The computation of the total amount of manufacturing overhead is shown below:

= Assembly department + Fabrication department

where,

Assembly department equals to

= $30 * 40 machine hours

= $1,200

Fabrication department would be

= $12 * 25 direct labor hour

= $300

So, the total manufacturing overhead would be

= $1,200 + $300

= $1,500