(Please note question 11 uses the same data but is asking for a different allocation method). Stillman Corporation uses a job-order cost system and has two
production departments Machining and Assembly. Budgeted manufacturing costs for the year are: Machining Assembly Direct Materials $700000 $100000 Direct
Labor 200000 800000 Manufacturing Overhead 600000 400000 The actual materials and labor costs charged to Job No. 234 during the year were as follows:
Direct Materials $25000 Direct Labor Costs for each Department are: Machining $ 8000 Assembly 12000 To calculate the full unit cost Stillman applies
manufacturing overhead to production orders on the basis of direct labor cost using separate departmental predetermined overhead rates. Using dollars of
overhead allocated per dollar of direct labor I.E. the allocation base is direct labor dollars is a rare but acceptable allocation method. To summarize; the
machining department uses $700000 in direct materials $200000 in direct labor and $600000 in manufacturing overhead. The Assembly department uses $100000
in direct materials $800000 in direct labor and $400000 in manufacturing overhead. Job 234 uses $25000 in direct materials and direct labor costs of $8000
in Machining and $12000 in Assembly. The total manufacturing costs associated with job No. 234 with this method should be: a. $50000 b. $55000 c. $65000 d.
$75000 e. None of the above are correct.