Plant vs. departmental OH ratesRed River Farm Machine makes a wide variety of products, all of which must be processed in the Cutting and Assembly departments. For the year, Red River budgeted total overhead of $993,000, of which $385,500 will be incurred in Cutting and the remainder will be incurred in Assembly. Budgeted direct labor and machine hours are as follows:   Cutting Assembly Budgeted direct labor hours 27,000 3,000 Budgeted machine hours 2,100 65,800 Two products made by Red River are the RW22SKI and the SD45ROW. The following cost and production time information on these items has been gathered:   RW22SKI SD45ROW Direct material $34.85 $19.57 Direct labor rate in Cutting $20.00 $20.00 Direct labor rate in Assembly $8.00 $8.00 Direct labor hours in Cutting 6.00 4.80 Direct labor hours in Assembly 0.03 0.05 Machine hours in Cutting 0.06 0.15 Machine hours in Assembly 5.90 9.30 a. What is the plantwide predetermined OH rate based on (1) direct labor hours and (2) machinehours for the upcoming year?Note: Round your answers to two decimal places (i.e. round $4.3555 to $4.36).(1) OH rate based on direct labor hours $Answer    per DLH(2) OH rate based on machine hours $Answer    per MHb. What are the departmental predetermined OH rates in Cutting and Assembly using the most appropriate base in each department?Note: Round your answers to two decimal places (i.e. round $4.3555 to $4.36).(1) OH rate in Cutting: $Answer    per DLH(2) OH rate in Assembly: $Answer    per MHc. What are the costs of products RW22SKI and SD45ROW using (1) a plantwide rate based on direct labor hours, (2) a plantwide rate based on machine hours, and (3) departmental rates calculated in (b)?Note: Round your answers to two decimal places (i.e. round $4.3555 to $4.36).   RW22SKI SD45ROW (1) Total cost using plantwide rate based on DLHs Answer   Answer   (2) Total cost using plantwide rate based on MHs Answer   Answer   (3) Total cost using rates in (b) Answer   Answer

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
icon
Related questions
Question

Plant vs. departmental OH rates
Red River Farm Machine makes a wide variety of products, all of which must be processed in the Cutting and Assembly departments. For the year, Red River budgeted total overhead of $993,000, of which $385,500 will be incurred in Cutting and the remainder will be incurred in Assembly. Budgeted direct labor and machine hours are as follows:

  Cutting Assembly
Budgeted direct labor hours 27,000 3,000
Budgeted machine hours 2,100 65,800

Two products made by Red River are the RW22SKI and the SD45ROW. The following cost and production time information on these items has been gathered:

  RW22SKI SD45ROW
Direct material $34.85 $19.57
Direct labor rate in Cutting $20.00 $20.00
Direct labor rate in Assembly $8.00 $8.00
Direct labor hours in Cutting 6.00 4.80
Direct labor hours in Assembly 0.03 0.05
Machine hours in Cutting 0.06 0.15
Machine hours in Assembly 5.90 9.30

a. What is the plantwide predetermined OH rate based on (1) direct labor hours and (2) machine
hours for the upcoming year?
Note: Round your answers to two decimal places (i.e. round $4.3555 to $4.36).
(1) OH rate based on direct labor hours $Answer

 

 per DLH
(2) OH rate based on machine hours $Answer

 

 per MH

b. What are the departmental predetermined OH rates in Cutting and Assembly using the most appropriate base in each department?
Note: Round your answers to two decimal places (i.e. round $4.3555 to $4.36).
(1) OH rate in Cutting: $Answer

 

 per DLH
(2) OH rate in Assembly: $Answer

 

 per MH

c. What are the costs of products RW22SKI and SD45ROW using (1) a plantwide rate based on direct labor hours, (2) a plantwide rate based on machine hours, and (3) departmental rates calculated in (b)?
Note: Round your answers to two decimal places (i.e. round $4.3555 to $4.36).

  RW22SKI SD45ROW
(1) Total cost using plantwide rate based on DLHs Answer
 
Answer
 
(2) Total cost using plantwide rate based on MHs Answer
 
Answer
 
(3) Total cost using rates in (b) Answer
 
Answer
 
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
steps

Unlock instant AI solutions

Tap the button
to generate a solution

Similar questions
Recommended textbooks for you
Advanced Engineering Mathematics
Advanced Engineering Mathematics
Advanced Math
ISBN:
9780470458365
Author:
Erwin Kreyszig
Publisher:
Wiley, John & Sons, Incorporated
Numerical Methods for Engineers
Numerical Methods for Engineers
Advanced Math
ISBN:
9780073397924
Author:
Steven C. Chapra Dr., Raymond P. Canale
Publisher:
McGraw-Hill Education
Introductory Mathematics for Engineering Applicat…
Introductory Mathematics for Engineering Applicat…
Advanced Math
ISBN:
9781118141809
Author:
Nathan Klingbeil
Publisher:
WILEY
Mathematics For Machine Technology
Mathematics For Machine Technology
Advanced Math
ISBN:
9781337798310
Author:
Peterson, John.
Publisher:
Cengage Learning,
Basic Technical Mathematics
Basic Technical Mathematics
Advanced Math
ISBN:
9780134437705
Author:
Washington
Publisher:
PEARSON
Topology
Topology
Advanced Math
ISBN:
9780134689517
Author:
Munkres, James R.
Publisher:
Pearson,