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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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