Question
Angle Max Industries produces a product which goes through two operations, Assembly and Finishing, before it is ready to be shipped. Next years expected costs
Angle Max Industries produces a product which goes through two operations, Assembly and Finishing, before it is ready to be shipped. Next years expected costs and activities are shown below.
| Assembly | Finishing | |||||
| Direct labor hours | 250,000 | DLH | 155,000 | DLH | ||
| Machine hours | 450,000 | MH | 60,000 | MH | ||
| Overhead costs | $ | 450,000 | $ | 697,500 | ||
Assume that the Assembly Department allocates overhead using a plantwide overhead rate based on machine hours. How much total overhead will be assigned to a product that requires 1 direct labor hour and 4.00 machine hours in the Assembly Department, and 4.40 direct labor hours and 0.8 machine hours in the Finishing Department?
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Financial and Managerial Accounting Information for Decisions
Authors: John Wild, Ken Shaw, Barbara Chiappetta
5th edition
978-1259347641
