Chan Company identified the following budgeted data for this year. The company manufactures two types of scooters:
Question:
Chan Company identified the following budgeted data for this year. The company manufactures two types of scooters: standard and fast.
1. Compute a single plantwide overhead rate assuming that the company allocates overhead cost based on 10,000 budgeted direct labor hours.
2. The standard model uses 5 direct labor hours per unit, and the fast model uses 10 direct labor hours per unit. Compute overhead cost per unit for each model.
Transcribed Image Text:
Activity Handling materials ..... Quality inspection.. Purchasing.. Total...... Budgeted Overhead Cost $625,000 90,000 25,000 $740,000 Budgeted Activity 100,000 parts 1,500 inspections 1,000 orders
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