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Estimated over cost department finishing: 3,000,000 assembly: 5,000,000 Direct Labor: Assembly: 100,000 Finishing: 25,000 hours Machinery Assembly: 70,000 Finishing: 30,000 hours Activity cost pool: sUPERVISION:
Estimated over cost
department finishing: 3,000,000
assembly: 5,000,000
Direct Labor:
Assembly: 100,000
Finishing: 25,000 hours
Machinery
Assembly: 70,000
Finishing: 30,000 hours
Activity cost pool:
sUPERVISION: 2,000,000
Maintenance: 6,000,000
Activity:
supervision: 125,000 direct hours
Machinery: 100,000 machine hours
Chrom Co. manufactures two models, the XL and RD. It also has two departments, assembly and finishing. The company wants to assign overhead costs to its two different models to better understand the profitability of each model. The Tableau Dashboard provides data for our analysis. Estimated Overhead Costs by Department Estimated Direct Labor Hours & Machine Hours by Department 150,000 hrs 125,000 hrs -- 100,000 hrs ----- Finishing 75,000 hrs - Assembly Total: $8,000,000 Assembly 50,000 hrs ---- Assembly 25,000 hrs Finishing Finishing Direct Labor Hours Machine Hours Supervision Total: $8,000,000 Maintenance 1. Using data from the upper half of the dashboard, compute the company's assembly department overhead rate using direct labor hours. 2. Using data from the upper half of the dashboard, compute the company's finishing department overhead rate using machine hours. & Answer is not complete. 1. Departmental overhead rate (Assembly) Estimated direct labor hours 2. Departmental overhead rate (Finishing) 0
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