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Read the requirements ?? Estimated overhead costs 650,000 71,000 Estimated gty o

ID: 2409466 • Letter: R

Question

Read the requirements ?? Estimated overhead costs 650,000 71,000 Estimated gty of the allocation b allocation rate Assembly PackagingS How much overhead is allocated to the basie model? To the professional model? Begin by selecting the formula to allocate overhead (OH) costs. (Abbreviation used Oty -quantity) 250,000 260 710,000 0.10 Predetermined OH allocation rate Actual qty of the allocation base used x Allocated mfg overhead costs Compute the total overhead allocated to the basic model, and then compute the total overhead allocated to the professional model. Basic Model Manufacturing overhead Assembly Manufacturing overhead-Packaging Total manufacturing overhead cost Enter any number in the edit fields and then click Check Answer. part remaining Clear All Cemer HPF PASPassport PEAR-CAwebMail viweb OrderFacilit..SimpleeP Internet Expl. EasyID ADVANCE -H. EasylD

Explanation / Answer

CACLULATION OF THE RECOVERY RATE OF OVERHEAD Estimated Overhead Cost "/" Estimated Quantity of the allocation base "=" Predetermined OH Allocate Rate Assembly $                                   6,50,000 "/" $                               5,15,000 "=" $                                       1.26 Packaging $                                      71,000 $                               7,77,000 "=" $                                       0.09 CALCULATION OF THE OVERHEAD ALLOCATED TO BASIC MODEL Assembly Packing   Total Overhead Machiene Hours                                       1,45,000 Hrs                                       85,000 Hrs Overhead Rate for Machiene Hours $                                           1.26 $                                       1.26 Total Overhead for Machiene Hrs (A) $                                   1,83,010 $                               1,07,282 $                               2,90,291 Assembly Packing   Direct Labour Hours                                           32,000 DLHr 45000 DLHr Overhead Rate for Labour Hours $                                           0.09 $                                       0.09 Total Overhead for Labour Hrs= $                                         2,924 $                                     4,112 $                                     7,036 TOTAL $                                   1,85,934 $                               1,11,394 $                               2,97,327