Armidale Company Ltd (ACL) manufactures Special-purpose machines (SPMs) and functions with two operational divisions, AFN and BFN. In the case of Division AFN, Direct Labor (DL) cost is the basis on which manufacturing overhead (MOH) costs are allocated to SPMs. In the case of Division BFN, Direct Labor (DL) hours is the basis on which manufacturing overhead (MOH) costs are allocated to SPMs. ACL's 2021 books contain the following additional information:
Budgeted Information/Data
Division AFN
Division BFN
Direct labor cost
$2,496,000
$4,275,000
Direct labor hours
249,600
450,000
Manufacturing overhead costs
$3,120,000
$2,565,000
Job No. BXM, completed during 2021, details are appended in the following table:
Actual Information/Data
Division AFN
Division BFN
Direct materials (DM) used in production/requisitioned
$237,000
$485,800
Direct labor cost
$344,000
$388,000
Direct labor hours
43,000
38,000
Required: Work out the following:
a) The budgeted (i.e. predetermined) rate for Division AFN at which MOH costs are allocated to jobs completed during 2021.
b) The budgeted (i.e. predetermined) rate for Division BFN at which MOH costs are allocated to jobs completed during 2021.
c) The total amount of MOH cost allocated to Job BXM.
d) The per cost of output produced under job BXM if ACL produced 3,500 units under Job BXM.