Answered step by step
Verified Expert Solution
Question
1 Approved Answer
K Car Plant (CP) designs and produces automotive parts. In 2020, actual variable manufacturing overhead is $330,080. CP's simple costing system allocates variable manufacturing
K Car Plant (CP) designs and produces automotive parts. In 2020, actual variable manufacturing overhead is $330,080. CP's simple costing system allocates variable manufacturing overhead to its three customers based on machine-hours and prices its contracts based on full costs. One of its customers has regularly complained of being charged noncompetitive prices, so CP's controller Dunbar Donahue realizes that it is time to examine the consumption of overhead resources more closely. He knows that there are three main departments that consume overhead resources: design, production, and engineering. Interviews with the department personnel and examination of time records yield the following detailed information: (Click the icon to view the information.) Read the requirements. Manufacturing overhead per dept. Total hours per dept. = Manufacturing overhead rate by dept. CP's 2020 manufacturing overhead rates by department are as follows: Department Design Engineering Production EA S Manufacturing Overhead Rate (by Department) 100 per CAD-design hour 84 per engineering hour 65 per machine hour Calculate the overhead allocated to each customer, by department, using the departmental manufacturing overhead rates calculated in the previous step. Calculate the total overhead cost for each department and each customer. State Department Motors Janek Motors Jerdon Auto Total Design Engineering Production Total Etext pages Get more help - F2 80 F3 000 000 F4 2 @ 3 $ 4 W F5 % 25 6 MacBook Ar :: DII DD F6 F7 F8 F9 27 & LLI E R T Y U * 9 ) 0 S D F GH J K L < X C V B N M D Clear all Check answer F10 F11 P + ll F12 { } [ 1 7 ? 11 del (Click the icon to view the information.) Read the req Data table - X Manufad CP's 2020 m Usage of Cost Drivers by Customer Contract Manufacturing Janek Department Cost Driver Overhead in 2020 State Motors Motors Jerdon Auto Dep Design CAD-design-hours $ 39,000 110 200 80 Design Engineering Production Engineering Engineering-hours 31,080 70 60 240 Production Machine-hours $ Total Calculate the department a 260,000 120 2,800 1,080 EA 330,080 Depar Design Engineering Production Print Done e previous step. Calculat
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