Question
Jameson's Fine Furnishings manufactures upscale custom fumiture. Jameson's currently uses a plantwide overhead rate based on direct labor hours to allocate its $1,290,000 of
Jameson's Fine Furnishings manufactures upscale custom fumiture. Jameson's currently uses a plantwide overhead rate based on direct labor hours to allocate its $1,290,000 of manufacturing overhead to individua CEO, is considering refining the company's costing system by using departmental overhead rates. Currently, the Machining Department incurs $870,000 of manufacturing overhead while the Finishing Department in Burger has identified machine hours (MH) as the primary manufacturing overhead cost driver in the Machining Department and direct labor (DL) hours as the primary cost driver in the Finishing Department (Click the icon to view the job information.) Read the requirements Requirement 1. Compute the plantwide overhead rate assuming that Jameson's expects to incur 30,000 total DL hours during the year. First identify the formula, then compute the rate. (Round your answer to the nearest whole dollar) Total manufacturing overhead 100.000 Cost allocation base (estimated) 30,000 Plantwide overhead rate Requirement 2. Compute departmental overhead rates assuming that Jameson's expects to incur 14,500 MH in the Machining Department and 17.500 DL hours in the Finishing Department during the year. First identify the formula, then compute the rate for each department (Round your answers to the nearest whole dollar) Machining Total department overhead 870.000 Cost allocation base (estimated) 14,500 Finishing 420.000 17,500 160 $ 24 Departmental overhead rale per mach hour per DL hour Requirement 3. If Jameson's continues to use the plantwide overhead rate, how much manufacturing overhead would be allocated to Job 450 and Job 4557 Fest identify the formula, then calculate the amount of manufacturing overhead that would be allocated to the jobs if the plantwide overhead rate is used. (Round your answers to t Job 450 Job 455 Plantwide overhead rate Manufacturing overhead 301 rest whole dolar Requirement 4. Jameson's uses departmental overhead rates, how much manufacturing overhead would be allocated to Job 450 and Job 4557 Use the following table to calculate the amount of manufacturing everhead that would be allocated to the jobs if the departmental overhead rates are used. (Round your answers to the nearest whole doter) Job 450 Job 455 Machining 180 300 Fishing 480 102 Total head alocation
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