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Fill in the Blank QuestionFill in the blank question.The Factory Services Department incurs costs of $130,000 while maintaining machinery that is operated 1,000,000 machine hours. If Job 276 requires 1,500 machine hours, the amount of costs allocated to the job will be $.

Question

Fill in the Blank QuestionFill in the blank question.The Factory Services Department incurs costs of 130,000whilemaintainingmachinerythatisoperated1,000,000machinehours.IfJob276requires1,500machinehours,theamountofcostsallocatedtothejobwillbe130,000 while maintaining machinery that is operated 1,000,000 machine hours. If Job 276 requires 1,500 machine hours, the amount of costs allocated to the job will be .

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Solution

To find the cost allocated to Job 276, we first need to calculate the cost per machine hour.

Step 1: Calculate the cost per machine hour Cost per machine hour = Total cost / Total machine hours Cost per machine hour = 130,000/1,000,000machinehoursCostpermachinehour=130,000 / 1,000,000 machine hours Cost per machine hour = 0.13 per machine hour

Step 2: Calculate the cost allocated to Job 276 Cost allocated to Job 276 = Cost per machine hour * Machine hours for Job 276 Cost allocated to Job 276 = 0.13permachinehour1,500machinehoursCostallocatedtoJob276=0.13 per machine hour * 1,500 machine hours Cost allocated to Job 276 = 195

So, the amount of costs allocated to Job 276 will be $195.

This problem has been solved

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