Reference no: EM132565355

Bob's Electronics Inc. manufactures high-tech screens for computers. In June, the two production departments had budgeted allocation bases of 13,100 machine hours in Department 1 and 7,200 direct manufacturing labour hours in Department 2. The budgeted manufacturing overheads for the month were $57,640 and $41,760, respectively.

For Job 101, the actual costs incurred in the two departments were as follows:

                                                                                           Department 1                                         Department 2

Direct materials purchased on account                            $66,000                                      $106,500

Direct materials used                                                   12,500                                           9,100

Direct manufacturing labour                                            32,500                                            32,200

Indirect manufacturing labour                                             6,600                                               5,400

Indirect materials used                                                         4,500                                             2,850

Lease on equipment                                                             9,750                                                2,250

Utilities                                                                                   600                                                   750

Job 101 incurred 1,700 machine hours in Department 1 and 910 manufacturing labour hours in Department 2. The company uses a budgeted departmental overhead rate for applying overhead to production.

Question 1. What is the budgeted indirect cost allocation rate for Department 1?

Question 2. What is the budgeted indirect cost allocation rate for Department 2?

Question 3. What is the total cost assigned to Job 101 based on normal costing?