Cost-actg (1) - Country Products manufactures quilt racks...

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Country Products manufactures quilt racks. Pine is introduced in Department 1, where the raw material is cut and assembled. In Department 2, completed racks are stained and packaged for shipment. Department 1 applies overhead on the basis of machines hours; Department 2 applies overhead on the basis of direct labor hours. The company's predetermined overhead rates were computed using the following information: Department 1 Department 2 Expected overhead $465,000 $380,600 Expected DLHs 4,000 22,000 Expected MHs 30,000 2,500 Sue Power contacted Country Products to produce 500 quilt racks as a special order. Power and watned the racks made from teak and to be made larger than the company's normal racks. Country Products designated Poiwer's order as Job #462. During July, Country Products purchased $346,000 of raw material on account, of which $19,000 was teak. Requisitions were issued for $340,000 of raw material, including all of the teak. There were 285 direct labor hours worked (at a rate of $11
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