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Question - Randolph Company has two departments (Department A and Department B) for Job #111. As cost drivers used to apply overhead to products, the Department A uses machine-hours and the Department B uses direct labor-hours. The following estimates were provided for 2018 at the beginning of the year.

 

Department A

Department B

Direct labor-hours

30,000

60,000

Machine-hours

80,000

20,000

Direct labor cost

$500,000

$900,000

Manufacturing overhead costs

$420,000

$240,000

The accounting records of the company show the following data for Job #111 for January:

 

Department A

Department B

Direct labor-hours

120

70

Machine-hours

60

5

Direct material cost

$300

$300

Direct labor cost

$500

$400

What is the amount of overhead costs allocated to Job#111 on the basis of job-order costing system?

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