Kilbourne Appliances produces two models of beverage coolers for homes and offices, the KA-15 and the KA-24. Data on operationsand costs for March follow.Units producedMachine-hoursDirect labor-hoursDirect materials costsDirect labor costsManufacturing overhead costs.Total costsKA-15a. Predetermined overhead ratePredetermined overhead rate612360750$ 72,40015,000KA-244085401,750$ 121,00035,000Required: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.Total1,0209002,500$ 193,40050,000189,000$ 432,400per direct labor-hourper machine-hour

The predetermined overhead rate is the rate determined for the purpose of computing the estimated…

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-15 612 360 750 $ 72,400 15,000 KA-24 408 540 1,750 $ 121,000 35,000 Total 1,020 900 2,500 $ 193,400 50,000 189,000 $ 432,400 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.

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-15 612 360 750 $ 72,400 15,000 KA-24 408 540 1,750 $ 121,000 35,000 Total 1,020 900 2,500 $ 193,400 50,000 189,000 $ 432,400 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.

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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