Question
Becton baking co, makes cakes for distribution to the restaurant. The companyhas two departments, mixing and baking. Manufacturing overhead is applied to each department as
Becton baking co, makes cakes for distribution to the restaurant. The companyhas two departments, mixing and baking. Manufacturing overhead is applied to each department as follows: mixing department as follows: mixing department based on $65 per direct labour hour (dlh) and baking department based on 180 per machine hour(mh). Production data as follows:
Actual MOH DLHMH
Mixing 125000022125 9652
Baking 7500009563756
1.Determine the amount of over- or- under appliedoverhead for each department
Becton baking co, makes cakes for distribution to the restaurant. The companyhas two departments, mixing and baking. Manufacturing overhead is applied to each department as follows: mixing department as follows: mixing department based on $65 per direct labour hour (dlh) and baking department based on 180 per machine hour(mh). Production data as follows:
DirectDirect LaborDLHMHOH rates
Material
Mixing925,19455312522125 9562 65
Baking900239009563756180
2.Calculate the total cost for the cakes (not per unit but for the entire batch in production)
3.Calculate the retail price in total for all the cakes, if the mark up rate is 25% of the cost
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