Solution-How much cost would be allocated to the machining

How much cost would be allocated to the machining

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Reference no: EM132547952

Consider the following information attributed to the material management department

Budgeted usage of materials - handling labor - hours 3,500

Budgeted cost pools:

Fixed costs $154,000

Variable costs $126,000 (3,500 hours x $36 per hour)

The company uses the single rate method to allocate support costs to the Machining and Assembly Departments.

Question 1: Assuming that the actual hours tracked in the Machining and Assembly department are 500 for the month, what would be the allocation rate and how much cost would be allocated to the Machining and Assembly Department for the operations of the month? (Round final answers to the nearest dollar.)

Group of answer choices

Option 1: $36 an hour for a total of $18,000

Option 2: $560 an hour for a total of $80

Option 3: $36 an hour for a total of $40,000

Option 4: $80 an hour for a total of $40,000

Reference no: EM132547952

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How much cost would be allocated to the machining

Reference no: EM132547952

Reference no: EM132547952

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