Question
a Company has just created its budget for 2022. Below is the approved budget information. COS Material $ 2,263,630 COS Labor 3,961,617 COS Overhead 9,728,673
a Company has just created its budget for 2022. Below is the approved budget information. COS Material $ 2,263,630 COS Labor 3,961,617 COS Overhead 9,728,673 COS Service 645,987 Freight Out (product shipping) 69,077 Direct Manufacturing Labor l 6,250,000 Indirect Manufacturing Labor 550,000 Engineering and QA Labor 1,200,000 Overtime Premium 255,000 Payroll taxes 660,100 Manufacturing Supplies 425,000 Tooling, fixtures and small equip 680,000 Depreciation 855,900 Rent Expense 600,000 Equipment Repairs & Maint 252,000 Utilities 198,000 Building R&M 498,600 Health, Dental, Life insurance 800,500 Workmens Comp & GL Insurance 155,500 Less: Applied to WIP, Direct (13,380,600) Total Direct labor hours paid per plan: 260,000 Holiday & Vacation hours: 16,000 Non-productive hours (training, etc) 24,400 80% of direct labor hours are machinists who run 2 jobs at a time and clock into both jobs 20% of direct labor hours are for downstream operations including assembly, inspection and finishing When employees clock into more than one job at once the system splits the employee time between the two jobs, but considers the machine hours to be the full time The Company only uses one overhead rate a) The company charges overhead to jobs based on direct labor hours. a. Calculate the average direct labor rate based on budgeted hours charged to jobs b. Please calculate budgeted OH rate b) The company charges overhead to jobs based on Machine hours a. Calculate budgeted OH rate
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started