Chan Company identified the following budgeted data for this year. The company manufactures two types of scooters: standard and fast. Activity Handling materials Quality inspection Purchasing Total Budgeted Overhead Cost $ 625,000 90,000 25,000 $ 740,000 Budgeted Activity 100,000 parts 1,500 inspections 1,000 orders 1. Compute a single plantwide overhead rate assuming that the company allocates overhead cost based on 10,000 budgeted direct labor hours. 2. The standard model uses 5 direct labor hours per unit, and the fast model uses 10 direct labor hours per unit. Compute overhead cost per unit for each model. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute a single plantwide overhead rate assuming that the company allocates overhead cost based on 10,000 budgeted direct labor hours. Numerator Denominator Budgeted overhead cost Budgeted direct labor hours The standard model uses 5 direct labor hours per unit, and the fast model uses 10 direct labor hours per unit. Compute overhead cost per unit for each model. Standard Fast Plantwide Overhead Rate Direct Labor Hours per Unit Overhead Cost per Unit

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Chan Company identified the following budgeted data for this year. The company manufactures two types of scooters:
standard and fast.
Activity
Handling materials
Quality inspection
Purchasing
Total
Budgeted Overhead Cost
$ 625,000
90,000
25,000
$ 740,000
Budgeted Activity
100,000 parts
1,500 inspections
1,000 orders
1. Compute a single plantwide overhead rate assuming that the company allocates overhead cost based on 10,000 budgeted direct
labor hours.
2. The standard model uses 5 direct labor hours per unit, and the fast model uses 10 direct labor hours per unit. Compute overhead
cost per unit for each model.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Compute a single plantwide overhead rate assuming that the company allocates overhead cost based on 10,000 budgeted direct labor hours.
Numerator
Denominator
Budgeted overhead cost
Budgeted direct labor hours
Transcribed Image Text:Chan Company identified the following budgeted data for this year. The company manufactures two types of scooters: standard and fast. Activity Handling materials Quality inspection Purchasing Total Budgeted Overhead Cost $ 625,000 90,000 25,000 $ 740,000 Budgeted Activity 100,000 parts 1,500 inspections 1,000 orders 1. Compute a single plantwide overhead rate assuming that the company allocates overhead cost based on 10,000 budgeted direct labor hours. 2. The standard model uses 5 direct labor hours per unit, and the fast model uses 10 direct labor hours per unit. Compute overhead cost per unit for each model. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute a single plantwide overhead rate assuming that the company allocates overhead cost based on 10,000 budgeted direct labor hours. Numerator Denominator Budgeted overhead cost Budgeted direct labor hours
The standard model uses 5 direct labor hours per unit, and the fast model uses 10 direct labor hours per unit. Compute
overhead cost per unit for each model.
Standard
Fast
Plantwide
Overhead Rate
Direct Labor
Hours per Unit
Overhead Cost
per Unit
Transcribed Image Text:The standard model uses 5 direct labor hours per unit, and the fast model uses 10 direct labor hours per unit. Compute overhead cost per unit for each model. Standard Fast Plantwide Overhead Rate Direct Labor Hours per Unit Overhead Cost per Unit
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