Jasper Company, a machine tooling firm, has several plants. One plant, located in Saint Cloud, Minnesota, uses a job order costing system for its batch production processes. The Saint Cloud plant has two departments through which most jobs pass. Plantwide overhead, which includes the plant manager's salary, accounting personnel, cafeteria, and human resources, is budgeted at $200,000. During the past year, actual plantwide overhead was $187,000. Each department's overhead consists primarily of depreciation and other machine-related expenses. Selected budgeted and actual data from the Saint Cloud plant for the past year are as follows:
Budgeted department overhead:
Department 1: $144,000
Department 2: $405,000
Actual department overhead:
Department 1: $168,000
Department 2: $420,000
Direct labor hours:
Department 1: 40,000
Department 2: 10,000
Machine hours:
Department 1: 16,000
Department 2: 45,000
Direct labor hours:
Department 1: 41,000
Department 2: 8,400
Machine hours:
Department 1: 165,000
Department 2: 47,000
Job 110 direct materials: $17,500
Direct labor:
Department 1: $33,000
Department 2: $12,000
Machine hours:
Department 1: 160
Department 2: 1,200
Units produced: 12,000