Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Charlie Manufacturing Company has two production departments, Melting and Molding. Direct general plant management and plant security costs benefit both production departments. Charlie allocates general

image text in transcribed

Charlie Manufacturing Company has two production departments, Melting and Molding. Direct general plant management and plant security costs benefit both production departments. Charlie allocates general plant management costs on the basis of the number of production employees and plant security costs on the basis of space occupied by the production departments. In November, the following overhead costs were recorded Melting Department direct overhead Molding Department direct overhead General plant management Plant security 350,000 600,000 180,000 70,000 Melting Molding 90 Space occupied (square feet) 20,000 80,000 10,000 2,000 4,000 20,000 Number of employees 50 Machine hours Direct labor hours (a) Prepare a schedule allocating general plant management costs and plant security costs to the Melting and Molding Departments. (Round your answer to the nearest whole number. Do not round until your final answer.) Department Total Melting Molding General Plant Management $ 180,000 $ 64,286 $ 115,714 x Plant security 70,000 $ 14,000 $ 56,000 (b) Determine the total departmental overhead costs for the Melting and Molding Departments. Melting $ 428,286 Molding $ 771,714x (c) Assuming the Melting Department uses machine hours and the Molding Department uses direct labor hours to apply overhead to production, calculate the overhead rate for each production department. (Round your answers to two decimal places.) Melting $ 39.17x Molding $ 279.17

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Quicken 2015 For Dummies

Authors: Stephen L. Nelson

1st Edition

1118920139, 978-1118920138

More Books

Students also viewed these Accounting questions

Question

6 How can an organisation increase its flexibility?

Answered: 1 week ago

Question

1.6 Identify ways that country culture influences global business.

Answered: 1 week ago