Problem 3 (4 points each = 8 points) Using the following Information, determine

Question

Problem 3 (4 points each = 8 points) Using the following Information, determine the overhead to be applied to each activity and in total. Product A Activity Inspection hours Setup hours Machine hours 100 40 50 Product B 200 20 150 MOH Application rate $20 per hour $10 per set up $30 per hour A. What is the MOH applied to each activity and in total for Product A? MOH Applied Product A Inspection hours Setup hours Machine hours Total B. What is the MOH applied to each activity and in total for Product B? MOH Applied Product B Inspection hours Setup hours Machine hours Total

Explanation / Answer

Product A

Inspection hours = 2000

Setup hours = 400

Machine hours = 1500

Total = 3900

Product B

Inspection hours = 4000

Setup hours = 200

Machine hours = 4500

Total = 8700

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