Flash Industries - Analyzing Indirect Costs (30 points) Flash Industries, a small business firm, produces raincoats and overcoats for commercial sale and for the Government. Most items are manufactured for specific customer orders. At the beginning of the year, the comptroller estimated costs and production hours for operations throughout the year. Note that Department A is more labor intensive and Department B is more automated. Department A Department B Plant Total Direct Material Cost $338,000 $23,500 $361,500 Direct Labor Cost $318,000 $110,000 $428,000 Department Overhead Cost $276,000 $480,000 $756,000 30,000 Direct Labor Hours 10,000 40,000 2,000 40,000 Machine Hours 42,000 Answer the following questions oca 1. As part of the planning process, forward pricing rates are calculated using the above data, as shown below. The base for the Department A Overhead rate is direct labor hours. The base for Department B Overhead is machine hours. Please calculate the overhead rates for Department A and Department B Overhead Rate Direct Labor Rate Department $318,000/30,000-$10.60 ph A $110,000/10,000- $11.00 ph B 2. During the year, Job #123, a firm fixed-price Government contract for production of 3,000 raincoats, will be started and completed. Estimate contract cost using the rates determined in Question 1 and the following information. Use the Job Cost Summary table for your calculations. Note Department A's overhead rate was calculated by using direct labor hours as the base and Department B utilized machine hours. Materials cost totaled $3,200 for Department A and $740 for Department B. Direct labor hours totaled 240 for Department A and 80 for Department B. Machine hours totaled 120 for Department A and 300 for Department B. Proposed / Negotiated Cost Summary for Job # 123 Department B Total Cost Element Department A Direct Material Direct Labor Factory Overhead Total Cost