Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Calculate the overhead
Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Calculate the overhead rates per direct-labor hour for the Etching Department and the Finishing Department. (Do not round intermediate calculations. Round your final answers to 3 decimal places.) Overhead rate per hour Etching Finishing S 10.600 $ 2.460 % Required information [The following information applies to the questions displayed below.) Celestial Artistry Company is developing departmental overhead rates based on direct-labor hours for its two production departments, Etching and Finishing. The Etching Department employs 20 people and the Finishing Department employs 80 people. Each person in these two departments works 2,000 hours per year. The production-related overhead costs for the Etching Department are budgeted at $200,000, and the Finishing Department costs are budgeted at $320,000. Two service departments, Maintenance and Computing, directly support the two production departments. These service departments have budgeted costs of $48,000 and $250,000, respectively. The production departments' overhead rates cannot be determined until the service departments' costs are allocated. The following schedule reflects the use of the Maintenance Department's and Computing Department's output by the various departments. Maintenance Service Department Maintenance (maintenance hours) Computing (minutes) Using Department Computing E tching 1,000 1,000 0 840,000 Finishing 8,000 120,000 240,000 Required: 1-a. Use the direct method to allocate service department costs. 1-b. Calculate the overhead rates per direct-labor hour for the Etching Department and the Finishing Department. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg 1A Req 1B Use the direct method to allocate service department costs. (Do not round intermediate calculations. Round your final answers to the nearest dollar amount.) $ 424,083 Costs allocated to Etching Costs allocated to Finishing Total costs to be allocated 393,917 $ 818,000 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Calculate the overhead rates per direct-labor hour for the Etching Department and the Finishing Department. (Do not round intermediate calculations. Round your final answers to 3 decimal places.) Overhead rate per hour Etching S 10.600 Finishing $ 2.460
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