Chan Company Identified the following activities, costs, and activity drivers fo

Question

Chan Company Identified the following activities, costs, and activity drivers for 2017. The company manufactures two types of go-karts: fast and standard Activity Handling materials Inspecting product Processing purchase orders Paying suppliers Insuring the factory Designing packaging Expected CostsExpected Activity $625,90e 10,eee parts 1,see batches 700 orders 900,0ee 105,00e 175,00e 300,000 75,000 500 invoices 40,000 square feet 2 models 1. Compute a sIngle plantwide overhead rate assuming that the company assigns overhead based on 100,000 budgeted direct labor hours. 2. In January 2017 the fast model requlred 2,500 direct labor hours and the standard model required 6,000 direct labor hours. Assign overhead costs to each model using the single plantwide overhead rate Complete this question by entering your answers in the tabs below Required 1Required 2 Compute a single plantwide overhead rate assuming that the company assigns overhead based on 100,000 budgeted direct labor hours Required 1 Required 2>

Explanation / Answer

a) Plantwide overhead rate = 2180000/100000 = 21.8 per labour hour

b) calculate assigned overhead :

Total DL hours required Plantwide overhead rate Total overhead cost Fast Model 2500 21.80 54500 Standard model 6000 21.80 130800

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