Question
Bervine, Inc produces two different products (bomper and woobles) using two different service department , Machine and inspection. The machine department uses machine hour as
Bervine, Inc produces two different products (bomper and woobles) using two different service department , Machine and inspection. The machine department uses machine hour as the base of overhead cost allocation, while the inspection department uses the no of inspection was the base for overhead costs allocation. The estimated budget cost of Machine is $800000 while the estimated budget cost of inspection is $60000. The actual Machine and Inspection costs for the year $750000 and $75000. Calculate total overhead allocated to bompers if it uses 40% of total machine hour and 60% of total inspection?
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