Jones Manufacturing Company makes two products. The company's budget includes $471,750 of overhead. In the past,...
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Jones Manufacturing Company makes two products. The company's budget includes $471,750 of overhead. In the past, the company allocated overhead based on estimated total direct labor hours of 18,870. Jones recently implemented an activity-based costing system and had determined that overhead can be broken into three overhead pools: processed purchase orders, machine setups, and good shipped. The following is a summary of company information: Estimated Cost Estimated Activities Orders processed $82,080 5,130 orders Machine setups 14,300 550 machine hours Shipping 35,532 56,400 shipments $131,912 v (a) Calculate the company's overhead rate based on total direct hours. The company's overhead rate $ per direct labor hour Click if you would like to Show Work for this question: Open Show Work Jones Manufacturing Company makes two products. The company's budget includes $471,750 of overhead. In the past, the company allocated overhead based on estimated total direct labor hours of 18,870. Jones recently implemented an activity-based costing system and had determined that overhead can be broken into three overhead pools: processed purchase orders, machine setups, and good shipped. The following is a summary of company information: Estimated Cost Estimated Activities Orders processed $82,080 5,130 orders Machine setups 14,300 550 machine hours Shipping 35,532 56,400 shipments $131,912 v (a) Calculate the company's overhead rate based on total direct hours. The company's overhead rate $ per direct labor hour Click if you would like to Show Work for this question: Open Show Work
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OM4 operations management
ISBN: 978-1133372424
4th edition
Authors: David Alan Collier, James R. Evans
Posted Date:
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