Answer to Question #61251 in Other for Serenamay Matthews

Question

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 100Department 200
Direct materials purchased on account $110,000$177,500
Direct materials used 32,50013,500
Direct manufacturing labor52,50053,500
Indirect manufacturing labor11,0009,000
Indirect materials used7,5004,750
Lease on equipment16,2503,750
Utilities1,0001,250

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.