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4-6 4. The following data relates to lead Company's estimated amounts for next year. Estimated Manufacturing overhead costs Direct labor hours Machine hours Department $1,200,000
4-6
4. The following data relates to lead Company's estimated amounts for next year. Estimated Manufacturing overhead costs Direct labor hours Machine hours Department $1,200,000 560,000 DLH 91.000 MH Department 2 $3,400,000 780,000 DLH 23,000 MH What is the company's plant wide overhead rate if direct-labor hours are the allocation base? (Round to two decimal places) A) $3.43 per direct labor hour. B) $2.14 per direct labor hour. C) $4.36 per direct labor hour. D) 5.29 per direct labor hour E) S.47 per direct labor hour. Use the following to answer questions 5.8: Aztec Industries produces bread which goes through two operations, mixing and baking, before it is ready to be packaged. Next year's expected costs and activities are shown below. Direct Labor Hours Machine Hours Overhead Costs Mixing 400.000 DLH 800.000 MH $600,000 Baking 80,000 DLH 800,000 MH $400,000 5. Compute Aztec's departmental overhead rate for the mixing department based on direct labor hours. A) $1.50 per DLH. B) $5.00 per DLH. C) S0.75 per DLH. D) $0.50 per DLH. E) $2.08 per DLH 6. Compute Azetec's departmental overhead rate for the mixing department based on machine hours. A) $1.50 per MH. B) $5.00 per MH. C) S0.75 per MH. D) $0.50 per MH. E) $2.08 per MH Step by Step Solution
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