A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs of $84,250 and the cost drivers for Product 1 is 200 and 500 for Product 2. The assembling activity pool has estimated costs of $61,145 and the cost drivers for Product 1 is 350 and 275 for Product 2. Direct labor hours for Product 1 is 462 and 210 for Product 2. What is the total manufacturing overhead rate to be used under traditional cost accounting? Round your final answer to the nearest whole dollar and do not write a dollar sign.
A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs of $84,250 and the cost drivers for Product 1 is 200 and 500 for Product 2. The assembling activity pool has estimated costs of $61,145 and the cost drivers for Product 1 is 350 and 275 for Product 2. Direct labor hours for Product 1 is 462 and 210 for Product 2. What is the total manufacturing overhead rate to be used under traditional cost accounting? Round your final answer to the nearest whole dollar and do not write a dollar sign.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs of $84,250 and the cost drivers for Product 1 is 200 and 500 for Product 2. The assembling activity pool has estimated costs of $61,145 and the cost drivers for Product 1 is 350 and 275 for Product 2. Direct labor hours for Product 1 is 462 and 210 for Product 2. What is the total manufacturing
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In the traditional cost method, the manufacturing overhead cost is distributed on the basis of direct labor hour or machine hour.
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