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Assume a job with one stair climber requires 8 direct labor (DL) hours to produce: 3 DL hours in the Machining Department and 5
Assume a job with one stair climber requires 8 direct labor (DL) hours to produce: 3 DL hours in the Machining Department and 5 DL hours in the Assembly Department. The plantwide overhead rate and departmental allocation rates are as follows: (Click the icon to view the plantwide overhead rate and departmental allocation rates.) Read the requirements. 1. How much MOH would be allocated to the job using the plantwide overhead rate? First, identify the formula, then calculate the amount of manufacturing overhead that would be allocated to the job if the plantwide overhead rate is used. MOH allocated to job 2. How much MOH would be allocated to the job using the departmental overhead rates? Use the information provided to calculate the amount of manufacturing overhead that would be allocated if the departmental overhead rates are used. Machining Dept. Assembly Dept. Total overhead allocation 3. Does the plantwide overhead rate overcost or undercost the job? By how much? Data table The plantwide overhead rate the job by Plantwide Overhead Rate $ 14 per DL hour Department Department Overhead Rate Machining $ Assembly $ 33 per DL hour 8 per DL hour
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