Overhead Calculation for Job ABC

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Question:

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Co.

Dept. A

Dept B.

Predetermined OH rate per direct labor hour

$2.10

$2.40

$1.80

Direct labor hours worked on Job ABC

30

17

13

Based on this information, the overhead applied to Job ABC using multiple predetermined overhead rates is Blank______.

Multiple choice question.

$63.00.

$64.20

$54.00.

$72.00.

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Answer:

To calculate the overhead applied to Job ABC using multiple predetermined overhead rates, we need to apply the overhead rates for each department based on the direct labor hours worked in that department.

  1. Calculate the overhead for Dept A:

    • Predetermined OH rate for Dept A = $2.10
    • Direct labor hours worked in Dept A = 30
    • Overhead applied for Dept A = $2.10 * 30 = $63.00
  2. Calculate the overhead for Dept B:

    • Predetermined OH rate for Dept B = $2.40
    • Direct labor hours worked in Dept B = 17
    • Overhead applied for Dept B = $2.40 * 17 = $40.80
  3. Calculate the overhead for Dept C:

    • Predetermined OH rate for Dept C = $1.80
    • Direct labor hours worked in Dept C = 13
    • Overhead applied for Dept C = $1.80 * 13 = $23.40
  4. Total overhead applied to Job ABC:

    • Total overhead = Overhead for Dept A + Overhead for Dept B + Overhead for Dept C
    • Total overhead = $63.00 + $40.80 + $23.40 = $127.20

However, it seems that the question only provides options that do not match this total. Let's check the calculations again for each department:

  • Dept A: $2.10 * 30 = $63.00
  • Dept B: $2.40 * 17 = $40.80
  • Dept C: $1.80 * 13 = $23.40

The total overhead applied to Job ABC is indeed $127.20, but since this does not match any of the provided options, it seems there may be a misunderstanding in the question or the options provided.

If we only consider the overhead from Dept A and Dept B, we get:

  • Total for Dept A and Dept B = $63.00 + $40.80 = $103.80, which still does not match any options.

Please double-check the question and the options provided. If you need to select from the given options, the closest calculation based on the departments provided would be $63.00 for Dept A alone.