x You received no credit for this question in the previous attempt. Exercise 4-5

Question

x You received no credit for this question in the previous attempt. Exercise 4-5A Allocating overhead cost among products LO 4-3 Baird Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour. Baird expects to incur $280,000 of overhead cost during the next fiscal year, Other budget information follows 2,200 4,200 7,600 14,000 1,300 1,4001,3004,000 ces Required a. Use direct labor hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product b. Use machine hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product Complete this question by entering your answers in the tabs below. B. e the allocation rate and the budgeted overhead cost for each product Use direct labor hours as the cost driver to comput

Explanation / Answer

Requirement a Overhead allocation rate based on direct labour hours                = Overheads costs/ Total Direct labour hours                = 280,000/14,000                = $20 per Labour Hour Allocation of Overheads to each product Product Allocation Rate X Weight of base = Allocated Cost Vogue 20 X         2,200 =       44,000 Beauty 20 X         4,200 =       84,000 Glamour 20 X         7,600 = 1,52,000 Total 2,80,000 Requirement b Overhead allocation rate based on Machine hours                = Overheads costs/ Total Machine hours                = 280,000/4,000                = $70 per Machine Hour Allocation of Overheads to each product Product Allocation Rate X Weight of base = Allocated Cost Vogue 70 X         1,300 =       91,000 Beauty 70 X         1,400 =       98,000 Glamour 70 X         1,300 =       91,000 Total 2,80,000

Related Questions

Navigate

• Browse (All)
• Browse X
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.