Question
Hello I need Help with my cost accounting homework, please. Thank You Exercise 5-33 Calculating Departmental Overhead Rates and Applying Overhead to Production At the
Hello I need Help with my cost accounting homework, please.
Thank You
Exercise 5-33 Calculating Departmental Overhead Rates and Applying Overhead to Production
At the beginning of the year, Glaser Company estimated the following:
| Assembly Department | Testing Department | Total |
Overhead | $338,000 | $630,000 | $968,000 |
Direct labor hours | 130,000 | 40,000 | 170,000 |
Machine hours | 45,000 | 120,000 | 165,000 |
Glaser uses departmental overhead rates. In the assembly department, overhead is applied on the basis of direct labor hours. In the testing department, overhead is applied on the basis of machine hours. Actual data for the month of March are as follows:
| Assembly Department | Testing Department | Total |
Overhead | $29,850 | $58,000 | $87,850 |
Direct labor hours | 11,700 | 3,450 | 15,150 |
Machine hours | 4,100 | 10,900 | 15,000 |
Required:
1.Calculate the predetermined overhead rates for the assembly and testing departments.
2.Calculate the overhead applied to production in each department for the month of March.
3.By how much has each departments overhead been overapplied? Underapplied?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started