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A. Heldelberg currently apples overhead on the basis of machine hours. What Is the predetermined overhead rate for the quarter? B. Heldelberg Is thinking of
A. Heldelberg currently apples overhead on the basis of machine hours. What Is the predetermined overhead rate for the quarter?
B. Heldelberg Is thinking of adopting an ABC system. They have tentatively chosen the following cost drivers: machine hours for machine depreciation, production runs for setup labor, and direct materal dollars for materials handling. Compute the cost oriver rates for the proposed syster at Heldelberg
Required Information Heidelberg Fabrication manufactures two products, G-09 and G-35: Units produced Direct materials cost per unit Machine-hours per unit G-BO 15,000 $7 4 144 G-35 3,769 $ 19 Production runs per quarter 72 Production at the plant is automated and any labor cost is included in overhead Data on manufacturing overhead at the plant follow: Machine depreciation Setup labor Paterials handling Total $ 101,528 58,768 40,688 $192,388 1 Required: a. Heidelberg currently applies overhead on the basis of machine hours. What is the predetermined overhead rate for the quaner? Note: Round your answer to 2 decimal places. b. Heidelberg is thinking of adopting an ABC system. They have tentatively chosen the following cost drivers: machine-hours for machine depreciation, production runs for setup labor, and direct material dollars for materials handling. Compute the cost driver rates for the proposed system at Heidelberg a. Overhead rate b. Machine depreciation b. Setup labor. b. Materials handling per machine hour per machine hour per production run direct material cost
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