Question
Machine Department FinishingDepartment Estimated Manufacturing Overhead by Department $800,000 $400,000 Company A 350,000 machine hrs 11,000 direct labor hours Company B 50,000 machine hrs 29,000
Machine Department FinishingDepartment
Estimated Manufacturing Overhead by Department $800,000 $400,000
Company A 350,000 machine hrs 11,000 direct labor hours
Company B 50,000 machine hrs 29,000 direct labor hours
Manufacturing overhead is driven by (machine hours--machining department) and (direct labor hours--finishing department). At the end of theyear, the following information was gathered for Company A and B.
Machine Department Finishing Department
Company A 352,000 machine hrs 10,500 hours
Company B 47,000 machine hrs 30,000 hours
How much manufacturing overhead will be allocated to the Company A?
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
