Kilbourne Appliances produces two models of beverage coolers for homes and offices, the KA-15 and the KA-24. Data on operations and costs for March follow. Units produced Machine-hours Direct labor-hours Direct materials costs. Direct labor costs Manufacturing overhead costs Total costs KA-15 624 360 750 a. Predetermined overhead rate b. Predetermined overhead rate $ 72,800 15,000 KA-24 416 540 1,750 $ 122,000 35,000 Required: a. Compute the predetermined overhead rate assuming that Kilbourne Appliances uses direct labor-hours to allocate overhead costs. Note: Round your answer to 2 decimal places. b. Compute the predetermined overhead rate assuming that Kilbourne Appliances uses machine-hours to allocate overhead costs. Total 1,040. 900 2,500 $ 194,800. 50,000 190,800 $.435,600 per direct labor-hour per machine-hour

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Kilbourne Appliances produces two models of beverage coolers for homes and offices, the KA-15 and the KA-24. Data on operations
and costs for March follow.
Units produced
Machine-hours
Direct labor-hours
Direct materials costs.
Direct labor costs
Manufacturing overhead costs
Total costs
KA-15
624
360
750
a. Predetermined overhead rate
b. Predetermined overhead rate
$ 72,800
15,000
KA-24
416
540
1,750
$ 122,000
35,000
Required:
a. Compute the predetermined overhead rate assuming that Kilbourne Appliances uses direct labor-hours to allocate overhead costs.
Note: Round your answer to 2 decimal places.
b. Compute the predetermined overhead rate assuming that Kilbourne Appliances uses machine-hours to allocate overhead costs.
Total
1,040.
900
2,500
$ 194,800.
50,000
190,800
$.435,600
per direct labor-hour
per machine-hour
Transcribed Image Text:Kilbourne Appliances produces two models of beverage coolers for homes and offices, the KA-15 and the KA-24. Data on operations and costs for March follow. Units produced Machine-hours Direct labor-hours Direct materials costs. Direct labor costs Manufacturing overhead costs Total costs KA-15 624 360 750 a. Predetermined overhead rate b. Predetermined overhead rate $ 72,800 15,000 KA-24 416 540 1,750 $ 122,000 35,000 Required: a. Compute the predetermined overhead rate assuming that Kilbourne Appliances uses direct labor-hours to allocate overhead costs. Note: Round your answer to 2 decimal places. b. Compute the predetermined overhead rate assuming that Kilbourne Appliances uses machine-hours to allocate overhead costs. Total 1,040. 900 2,500 $ 194,800. 50,000 190,800 $.435,600 per direct labor-hour per machine-hour
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