Dougherty furniture company manufactures tables

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Reference no: EM13954555

The Dougherty Furniture Company manufactures tables. In March, the two production departments had budgeted allocation bases of 4,000 machine-hours in Department 100 and 8,000 direct manufacturing labor-hours in Department 200. The budgeted manufacturing overheads for the month were $57,500 and $62,500, respectively. For Job A, the actual costs incurred in the two departments were as follows:

	Department 100	Department 200
Direct materials purchased on account	$110,000	$177,500
Direct materials used	32,500	13,500
Direct manufacturing labor	52,500	53,500
Indirect manufacturing labor	11,000	9,000
Indirect materials used	7,500	4,750
Lease on equipment	16,250	3,750
Utilities	1,000	1,250

Job A incurred 800 machine-hours in Department 100 and 300 manufacturing labor-hours in Department 200. The company uses a budgeted overhead rate for applying overhead to production.

Questions:

1. Determine the budgeted manufacturing overhead rate for each department.

2. Prepare the necessary journal entries to summarize the March transactions for Department 100.

3. What is the total cost of Job A?

Reference no: EM13954555

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