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
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
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 2E: Bach Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted...
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