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Problem - The Polish Factory manufactures natural resources in Ireland. At the beginning of 20XX, the accountant provided the following estimates associated with Department A and Department B for the coming year:
According to the reports provided by the manager at the Polish Factory, the following data was presented to represent a job that was completed during the year:
Department A
Department B
Direct labor hours
150
80
Machine-hours
50
8
Direct material cost
$275
$180
Direct labor cost
$75
$350
Assume that the Polish Factory uses departmental cost driver rates to allocate manufacturing overhead to products. The manufacturing overhead costs are allocated on the basis of machine-hours in Department A on the basis of direct labor-hours in Department B.
Required - Please help me, and show work.
1. Compute the annual manufacturing cost-allocation rate for Department A.
2. What amount of overhead should be allocated to the job?
3. What are the total manufacturing costs associated with the job?
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