Business, 25.04.2020 01:50 angie249

Bauer Manufacturing uses departmental cost driver rates to allocate manufacturing overhead costs to products. Manufacturing overhead costs are allocated on the basis of machine-hours in the Machining Department and on the basis of direct labor-hours in the Assembly Department.
At the beginning of 2018, the following estimates were provided for the coming year:

Machining Assembly
Direct labor - hours 40,000 40,000
Machine - hours 50,000 20,000
Direct labor costs 500,000 $900,000
Manufacturing overhead costs $280,000 $360,000

The accounting records of the company show the following data for Job #316

Machine Assembly
Direct labor - hours 120 65
Machine - hours 50 5
Direct material cost $425 $175
Direct labor cost $275 $300

What are the total manufacturing costs for Job #316?

A) $2,040 B) $1,960 C) $1,175 D) $1,440

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