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Assembly Customizing

Total machine hours 19,000 15,000

Direct labor hours 4,000 6,000

Fixed manufacturing overhead $100,700 $63,000

Variable manufacturing overhead per machine hour $2.00 -

Variable manufacturing overhead per labor hour - $3.90

Overhead rate based on: Machine hour Labor hour

18. What is the predetermined overhead rate for the Assembly department?

19. What is the predetermined overhead rate for the Customizing department?

Expert Solution

All working forms part of the answer
Working:

Working		Assembly Department	Customizing Department
A	Fixed Manufacturing Overheads	$ 100,700.00	$ 63,000.00
	Allocation base	machine hours (MH)	direct labor hours (DLH)
B	Amount of Allocation base	19,000	6,000
C = A/B	Fixed Manufacturing Overhead per allocation base	$ 5.30 per MH	$ 10.50 per DLH
D	Variable manufacturing overhead per allocation base	$ 2.00 per MH	$ 3.90 per DLH
E = C+D	Predetermined Overhead rate	$ 7.30 per MH	$ 14.40 per DLH

Answers

Answer 18 = $ 7.30 per machine hours

Answer 19 = $ 14.40 per direct labor hour

ekkarill92 answered 1 year ago

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