**Fast & Furious Company Overhead Allocation**Fast & Furious Company produces two products: toy planes and toy race cars. It uses departmental overhead rates for the two production departments: Molding and Finishing. Molding uses machine hours, and Finishing uses direct labor hours. The company produces 50,000 planes and 250,000 race cars. Below is the data prepared by Fast & Furious:| | Molding | Finishing | Total ||------------------------------|----------|-----------|---------|| Estimated overhead | $250,000 | $100,000 | $350,000|| Actual overhead | $240,000 | $120,000 | $360,000|**Expected Direct Labor Hours:**- **Planes**: Molding 5,000 | Finishing 5,000 | Total 10,000- **Race cars**: Molding 5,000 | Finishing 35,000 | Total 40,000**Expected Machine Hours:**- **Planes**: Molding 17,000 | Finishing 3,000 | Total 20,000- **Race cars**: Molding 3,000 | Finishing 7,000 | Total 10,000**Actual Direct Labor Hours:**- **Planes**: Molding 4,500 | Finishing 5,500 | Total 10,000- **Race cars**: Molding 5,500 | Finishing 34,500 | Total 40,000**Actual Machine Hours:**- **Planes**: Molding 16,500 | Finishing 3,500 | Total 20,000- **Race cars**: Molding 3,200 | Finishing 6,800 | Total 10,000**Question:**How much overhead is applied to the planes?- A. $225,000- B. $192,500- C. $60,000- D. $250,000This data provides an overview of the resource allocation within Fast & Furious Company, highlighting the difference between estimated and actual overhead costs and hours in both the Molding and Finishing departments. Understanding these metrics assists in effectively managing production costs and improving efficiency.

Molding department overhead rate = Molding department estimated overheads/Expected machine hours =…

Fast & Furious Company produces two products: toy planes and toy race cars. It uses departmental overhead rates for the two production departments: Molding and F Finishing uses direct labor hours. 50,000 planes and 250,000 race cars are produced. Fast & Furious has prepared the following data: Estimated overhead Actual overhead Expected direct labor hours: Planes Race cars Expected machine hours: Planes Race cars Actual direct labor hours: Planes Race cars Actual machine hours: Planes Race cars Molding Finishing $250,000 $100,000 Total $350,000 $240,000 $120,000 $360,000 5,000 5,000 17,000 3,000 4,500 5,500 16,500 3,200 How much overhead is applied to the planes? Oa. $225,000 Ob. $192,500 Oc. $60,000 Od. $250,000 5,000 35,000 3,000 7,000 5,500 34,500 3,500 6,800 10,000 40,000 20,000 10,000 10,000 40,000 20,000 10,000

Fast & Furious Company produces two products: toy planes and toy race cars. It uses departmental overhead rates for the two production departments: Molding and F Finishing uses direct labor hours. 50,000 planes and 250,000 race cars are produced. Fast & Furious has prepared the following data: Estimated overhead Actual overhead Expected direct labor hours: Planes Race cars Expected machine hours: Planes Race cars Actual direct labor hours: Planes Race cars Actual machine hours: Planes Race cars Molding Finishing $250,000 $100,000 Total $350,000 $240,000 $120,000 $360,000 5,000 5,000 17,000 3,000 4,500 5,500 16,500 3,200 How much overhead is applied to the planes? Oa. $225,000 Ob. $192,500 Oc. $60,000 Od. $250,000 5,000 35,000 3,000 7,000 5,500 34,500 3,500 6,800 10,000 40,000 20,000 10,000 10,000 40,000 20,000 10,000

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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