Question
Condoleezza Co. manufactures two products, A and B, in two production departments, Assembly and Finishing. Condoleezza Co. expects to produce 10,000 units of Product A
Condoleezza Co. manufactures two products, A and B, in two production departments, Assembly and Finishing. Condoleezza Co. expects to produce 10,000 units of Product A and 20,000 units of Product B in the coming year. Budgeted factory overhead costs for the coming year are:
Assembly | $310,000 |
Finishing | 240,000 |
Total | $550,000 |
The machine hours expected to be used in the coming year are as follows:
Assembly Department | Finishing Department | |
Product A | 15,100 | 9,000 |
Product B | 4,900 | 11,000 |
Total | 20,000 | 20,000 |
Round your answers to two decimal places, if necessary.
a. Compute the plantwide factory overhead rate, assuming the single plantwide factory overhead rate method is used. $fill in the blank 1 per mh
b. Compute the production department factory overhead rates, assuming the multiple production department factory overhead rate method is used.
Assembly Dept. | $fill in the blank 2 per mh |
Finishing Dept. | $fill in the blank 3 per mh |
c. Compute the factory overhead allocated per unit for each product using:
The single plantwide rate:
Product A | $fill in the blank 4 per unit |
Product B | $fill in the blank 5 per unit |
Production department factory overhead rates:
Product A | $fill in the blank 6 per unit |
Product B | $fill in the blank 7 per unit |
d. Which method is better (single or multiple)?
Single plantwide factory overhead rate methodMultiple production department factory overhead rate method
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