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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$320,000 Finishing 240,000 Total $560,000 The machine hours expected to be used in the coming year are as follows: Assembly Finishing DepartmentDepartment Product A15,100 9,000 Product B 4,900 11,000 Total 20,000 20,000 $ a) Compute the production department factory overhead rate for Assembly Department $ b) Compute the production department factory overhead rate for Finishing Department $ c) Compute the factory overhead allocated per unit for Product B using production department factory overhead rates
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