Weber Company purchases $55,000 of raw materials on account, and it incurs $62,100 of factory labor costs. Supporting records show that (a) the Assembly Department used $31,900 of raw materials and $38,200 of the factory labor, and (b) the Finishing Department used the remainder. Manufacturing overhead is assigned to departments on the basis of 160% of labor costs.

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22-02-2020
Business

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Weber Company purchases $55,000 of raw materials on account, and it incurs $62,100 of factory labor costs. Supporting records show that (a) the Assembly Department used $31,900 of raw materials and $38,200 of the factory labor, and (b) the Finishing Department used the remainder. Manufacturing overhead is assigned to departments on the basis of 160% of labor costs.

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Supabrain Supabrain · Answer 1 · 2020-02-22T09:37:28+01:00

Answer:total cost for Assembly department is 131,220 and for finishing department is 85,240 and the factory overheads for assembly and finishind department respectively is 61,120 and 38,240

Explanation:

WEBER COMPANY

Production costs per department

Assembly Finishing total

raw material $31,900 $23,100 $55,000

labour cost $38,200 $23,900 $62,100

factory overheads $61,120 $38,240 $99,360

total cost $131,220 $85,240 $216,460

to calculate the factory overheads we take the amount for labour in a department and multiple it by 160% meaning for Assembly department it is 38200*160/100= 61120