Question 2 Lano Limited has decided to move from a factory-wide to a departmental overhead allocation policy with the overhead allocation base to be the dominant activity in that department. It has three departments, Prep, Casting and Finishing. You are given the following information: Expected Overheads Machine hours Labour Hours Prep 1,200,000 6,000 6785 Casting 560,000 5,690 3,000 Finishing 890,000 4,000 8,000 Based on this information, what will the overhead allocation rate for the Prep department be? Round your answer to the nearest whole number.

Question 2 Lano Limited has decided to move from a factory-wide to a departmental overhead allocation policy with the overhead allocation base to be the dominant activity in that department. It has three departments, Prep, Casting and Finishing. You are given the following information: Expected Overheads Machine hours Labour Hours Prep 1,200,000 6,000 6785 Casting 560,000 5,690 3,000 Finishing 890,000 4,000 8,000 Based on this information, what will the overhead allocation rate for the Prep department be? Round your answer to the nearest whole number.

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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Adirondack Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. Painting Dept. Finishing Dept. Totals Overhead $254,100 80,200 $334,300 Ob. $2.07 per dlh Oc. $7.71 per dlh Od. $24.20 per dlh Total Direct Labor Hours 10,500 10,400 20,900 DLH per Product A 9 6 15 B 10 The single plantwide factory overhead rate for Adirondack Marketing Inc. is Oa. $16.00 per dlh 6 16
Using plant wide FOH rate based on direct labor, how much is the FOH rate per unit Assume in Assembly department, machine hours is the basis in calculating the FOH rate what is the departmental FOH rate per unit Assume in Finishing department, direct labor hours is the basis in calculating the FOH rate. What is the departmental foh rate per unit?
Adirondack Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. Total DLH per Product Direct Overhead Labor Hours B Painting Dept. $248,400 10,300 Finishing Dept. 65,700 10,000 6 Totals $314,100 20,300 11 12 The single plantwide factory overhead rate for Adirondack Marketing Inc. is Oa. $6.57 per dlh Ob. $15.47 per dlh Oc. $2.09 per dlh Od. $24.12 per dlh
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