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Mitchell's Softball Gloves Company overhead rates.

Mitchell's Softball Gloves Company estimated the following art the beginning of the year.

Assembly Department Testing Department Total
Overhead $570,000 $130,000 $700,000
Direct Labor Hours 142,500 32,500 175,000
Machine Hours 32,000 65,000 97,000

Mitchell uses departmental overhead rates. In the assembly department, direct labor hours ar used to apply overhead. Machine hours are used to apply overhead in the testing department.

Actual data for August is as follows:

Assembly Department Testing Department Total
Overhead $42,000 $12,000 $54,000
Direct Labor Hours 13,500 2,430 15,930
Machine Hours 4,020 11,000 15,020

Refer to Figure 5-3. Michell decides to continue using departmental overhead rates. If a job spends 4 hours in assembly and 3 hours in testing, what is the amount of overhead charged to the job?

Answer
a.$22
b.$20
c.$28
d.$50.54
e.none of these

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