Required information The following information applies to the questions displaye

Question

Required information The following information applies to the questions displayed below.] Wall Nuts, Inc. produces paneling that requires two processes, A and B, to complete. Oak is the best-selling of all the many types of paneling produced. Information related to the 40,000 units of oak paneling produced annually is shown in the following table $380,000 Direct materials Direct labor Department A (6,000 DLH × $25 per DLH) Department B (35, 125 DLH $16 per DLH) 150,000 $562,000, Machine Hours Department A Department B 24,000 ME 32, 000 MH Wall Nuts total expected overhead costs and related overhead data are shown below. Depar 170, 000 DLH 80, 000 MI 67, 000 DLH Direct labor hours Hachine hours Manufacturing overhead costs 100,000 $450,000 $600,000 Use the data for Wall Nuts, Inc. to compute departmental overhead rates based on machine hours in Department A and machine hours in Department B Multiple Choice 4.50 per MH in Dept A $4.50 per MH in Dept. 8 Next>

Explanation / Answer

Overhead rate per MH = Manufacturing Overhead costs / Machine Hours Department A Department B Manufacturing Overhead costs             4,50,000             6,00,000 Machine Hours             1,00,000                80,000 Overhead rate per MH $4.50 per MH $7.50 per MH

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