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Apple Valley Corporation uses a job cost system and has two production departments, A and B. Budgeted manufacturing costs for the year are:
Department A Department B Direct materials $700,000 $100,000 Direct manufacturing labor $200,000 $800,000 Manufacturing overhead $600,000 $400,000
The actual material and labor costs charged to Job #432 were as follows: Total Direct materials: $25,000 Direct labor: Department A $ 8,000 Department B $12,000 $20,000 Apple Valley applies manufacturing overhead costs to jobs on the basis of direct manufacturing labor cost using departmental rates determined at the beginning of the year. For Department A, the manufacturing overhead allocation rate is: For Department B, the manufacturing overhead allocation rate is: Manufacturing overhead costs allocated to Job #432 total:

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