Assembly Customizing Total machine hours 19,000 15,000 Direct labor hours 4,000
ID: 2333295 • Letter: A
Question
Assembly Customizing
Total machine hours 19,000 15,000
Direct labor hours 4,000 6,000
Fixed manufacturing overhead $100,700 $63,000
Variable manufacturing overhead per machine hour $2.00 -
Variable manufacturing overhead per labor hour - $3.90
Overhead rate based on: Machine hour Labor hour
18. What is the predetermined overhead rate for the Assembly department?
19. What is the predetermined overhead rate for the Customizing department?
Explanation / Answer
Answers
Working
Assembly Department
Customizing Department
A
Fixed Manufacturing Overheads
$ 100,700.00
$ 63,000.00
Allocation base
machine hours (MH)
direct labor hours (DLH)
B
Amount of Allocation base
19,000
6,000
C = A/B
Fixed Manufacturing Overhead per allocation base
$ 5.30 per MH
$ 10.50 per DLH
D
Variable manufacturing overhead per allocation base
$ 2.00 per MH
$ 3.90 per DLH
E = C+D
Predetermined Overhead rate
$ 7.30 per MH
$ 14.40 per DLH
Answer 18 = $ 7.30 per machine hours
Answer 19 = $ 14.40 per direct labor hour
Working
Assembly Department
Customizing Department
A
Fixed Manufacturing Overheads
$ 100,700.00
$ 63,000.00
Allocation base
machine hours (MH)
direct labor hours (DLH)
B
Amount of Allocation base
19,000
6,000
C = A/B
Fixed Manufacturing Overhead per allocation base
$ 5.30 per MH
$ 10.50 per DLH
D
Variable manufacturing overhead per allocation base
$ 2.00 per MH
$ 3.90 per DLH
E = C+D
Predetermined Overhead rate
$ 7.30 per MH
$ 14.40 per DLH
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