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A company has two departments within its production facility. You have the following information for both departments: Total Estimated Manufacturing Overhead Total Estimated Direct Labor
A company has two departments within its production facility. You have the following information for both departments: Total Estimated Manufacturing Overhead Total Estimated Direct Labor Hours Total Estimated Machine Hours Department 1 $450,000 225,000 10,000 Department 2 $550.000 10,000 40,000 Total $1,000,000 235,000 50,000 If a plant-wide rate is used based on machine hours, and product A used a total of 21 machine hours, the total overhead applied to product A would be: $288.75 $340.00 $420.00 $331.00 A company has two departments within its production facility. Each department has a separate allocation base for applying manufacturing overhead. You have the following information for both departments and the plant overall: Department 1 Department 2 Total Total Estimated Manufacturing $900,000 $1,100,000 $2,000,000 Overhead Total Estimated Direct Labor Hours 225.000 10,000 235,000 Total Estimated Machine Hours 10.000 40,000 50,000 MOH Rate $4 per DLH $27.50 per MH Product B used a total of 40 machine hours (10 in Department 1 and 30 in Department 2), and 80 direct labor hours (55 in Department 1 and 25 in Department 2). The total overhead applied to product B using departmental rates would be: $1,045.00 $1,600.00 $3,200.00 $1,772.50
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