A Corporation has two manufacturing departments (Dept 1 and Dept 2). The company used the following data at the beginning of the period to calculate a predetermined overhead rate. Estimated total machine-hours (MHs) Estimated total direct labor hours (DLHs) Estimated total fixed manufacturing overhead cost Dept 1 5,000 3,000 $ 18,000 Dept 2 8,000 1,700 $ 14,000 $ 5.25/MH Estimated variable manufacturing overhead $9.10/MH cost per machine hour Estimated variable manufacturing overhead S 8.20/DLH $ 20.00/DLH cost per direct labor hour Total 13,000 4,700 $ 32,000 a) Assume that the company decides to use a plantwide predetermined overhead rate based on direct labor hours. Calculate the plantwide predetermined overhead rate. b) Assume that the company also calculated a plantwide predetermined overhead rate based on machine hours. Calculate the plantwide predetermined overhead rate.

A Corporation has two manufacturing departments (Dept 1 and Dept 2). The company used the following data at the beginning of the period to calculate a predetermined overhead rate. Estimated total machine-hours (MHs) Estimated total direct labor hours (DLHs) Estimated total fixed manufacturing overhead cost Dept 1 5,000 3,000 $ 18,000 Dept 2 8,000 1,700 $ 14,000 $ 5.25/MH Estimated variable manufacturing overhead $9.10/MH cost per machine hour Estimated variable manufacturing overhead S 8.20/DLH $ 20.00/DLH cost per direct labor hour Total 13,000 4,700 $ 32,000 a) Assume that the company decides to use a plantwide predetermined overhead rate based on direct labor hours. Calculate the plantwide predetermined overhead rate. b) Assume that the company also calculated a plantwide predetermined overhead rate based on machine hours. Calculate the plantwide predetermined overhead rate.

Name: Problem 3A Corporation has two manufacturing departments (Dept 1 and
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Description: Problem 3A Corporation has two manufacturing departments (Dept 1 and Dept 2). The company used thefollowing data at the beginning of the period to calculate a predetermined overhead rate.Estimated total machine-hours (MHs)Estimated total direct labo

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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