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# 2 and 3 please explain Furniture Plant: nenartmental ilata (hisineteri). After some discussion with the furniture plant controller, Gisela decided to use machine hours
# 2 and 3 please explain
Furniture Plant: nenartmental ilata (hisineteri). After some discussion with the furniture plant controller, Gisela decided to use machine hours to calculate the overhead rate for the Cutting Department and direct labor hours for the Assembly Department rate (the Cutting Department was more automated than the Assembly Department). As part of her report, she wanted to compare the effects of plantwide rates and departmental rates on the cost of jobs. She wanted to know if overhead costing could be the source of the pricing problems the company was experiencing. To assess the effect of the different overhead assignment procedures, Gisela decided to examine two prospective jobs. One job, Job A500, could produce 500 sofas, using a frequently requested style and Fabric FB70. Bids on this type of job were being lost more frequently to competitors. The second job, Job B75, would produce 75 specially designed recliners. This job involved a new design and was more difficult for the workers to build. It involved some special cutting requirements and an unfamiliar assembly. Recently, the company seemed to be winning more bids on jobs of this type. To compute the costs of the two jobs, Gisela assembled the following information on the two jobs: a. Using the weighted average method, complete the following information regarding the Weaving and Pattern production process: i. Physical flow schedule (measured in yards) ii. Materials Conversion Costs iii. Unit cost iv. Cost of goods transferred out b. To convert the output of the Weaving and Pattern Department to the output of the Coloring and Bolting Department, yards transferred is by c. Using the weighted average method, complete the following for the Coloring and Bolting Department: i. Physical flow schedule (measured in bolts)Step by Step Solution
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