Redfern Audio produces audio equipment including headphones. At the Campus Facility, it produces two wireless models, Standard and Enhanced, which differ both in the materials and components used and in the labor skill required. Data for the Campus Plant for the third quarter follow. Standard Enhanced Total Units produced 25,200 8,400 33,600 Machine-hours 15,120 10,080 25,200 Direct labor-hours 18,900 18,900 37,800 Direct materials costs $ 504,000 $ 756,000 $ 1,260,000 Direct labor costs 302,400 642,600 945,000 Manufacturing overhead 846,720 Total costs $ 3,051,720 Required: Compute the predetermined overhead rate assuming that Redfern Audio uses direct labor-hours to allocate overhead costs. Note: Round your answer to 2 decimal places. Predetermined overhead rate per direct labor hour
Redfern Audio produces audio equipment including headphones. At the Campus Facility, it produces two wireless models, Standard and Enhanced, which differ both in the materials and components used and in the labor skill required. Data for the Campus Plant for the third quarter follow. Standard Enhanced Total Units produced 25,200 8,400 33,600 Machine-hours 15,120 10,080 25,200 Direct labor-hours 18,900 18,900 37,800 Direct materials costs $ 504,000 $ 756,000 $ 1,260,000 Direct labor costs 302,400 642,600 945,000 Manufacturing overhead 846,720 Total costs $ 3,051,720 Required: Compute the predetermined overhead rate assuming that Redfern Audio uses direct labor-hours to allocate overhead costs. Note: Round your answer to 2 decimal places. Predetermined overhead rate per direct labor hour
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 31P: Fisico Company produces exercise bikes. One of its plants produces two versions: a standard model...
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Redfern Audio produces audio equipment including headphones. At the Campus Facility, it produces two wireless models, Standard and Enhanced, which differ both in the materials and components used and in the labor skill required. Data for the Campus Plant for the third quarter follow.
| Standard | Enhanced | Total | |
|---|---|---|---|
| Units produced | 25,200 | 8,400 | 33,600 |
| Machine-hours | 15,120 | 10,080 | 25,200 |
| Direct labor-hours | 18,900 | 18,900 | 37,800 |
| Direct materials costs | $ 504,000 | $ 756,000 | $ 1,260,000 |
| Direct labor costs | 302,400 | 642,600 | 945,000 |
| Manufacturing |
846,720 | ||
| Total costs | $ 3,051,720 |
Required:
Compute the predetermined overhead rate assuming that Redfern Audio uses direct labor-hours to allocate overhead costs.
Note: Round your answer to 2 decimal places.
|
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