2. The Wood 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 100 Department 200 Direct materials purchased on account $110,000 $177,500 Direct materials used 32,500 13,500 Direct manufacturing labor 52,500 53,500 Indirect manufacturing labor 11,000 9,000 Indirect materials used 7,500 4,750 Lease on equipment 16,250 3,750 Utilities 1,000 1,250 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. Required: a. Determine the budgeted manufacturing overhead rate for each department. b. Prepare the necessary journal entries to summarize the March transactions for Department 100. c. What is the total cost of Job A?
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