Manufacturing overhead costs $ Direct labor cost $ Direct labor hours Machine hours 160,000 $ 25,000 $ 2,500 100 240,000 6,250 625 2,000 a) Single Plant-Wide Overhead Rate Compute departmental overhead rates. Assume welding applies overhead using direct labor hours and fabrication using machine hours. b) Departmental Overhead Rate-Welding per DL hr c) Departmental Overhead Rate-Fabrication per mach. Hr Exercise 2 Loco Company sells 2 products (standard & deluxe) and it identifies the following overhead costs, activities, and drivers for 2011. Expected Expected Activity Cost Actitvity Driver Handling materials $12,000 1,250 Parts Storing materials $3,000 2,500 Square feet Inspecting product $24,000 500 Batches Purchasing $30,000 1,250 Purchase orders Insuring the factory $6,000 12,500 Square feet Cleaning workspace $3,000 12,500 Square feet Factory utilities $9,000 1,250 Machine hours Total overhead cost $87,000 Estimated production data for the two products is as follows: Standard Deluxe Volume (in units) 15,000 5,000 Parts 750 500 Storage space used 1,750 750 Batches made 250 250 Purchase orders 875 375 Workspace used 10,000 2,500 Machine hours 500 750 I I I Calculate the following ABC overhead rates (round to the penny). a) ABC Rate - Handling per part b) ABC Rate - Storing per sq.ft c)ABC Rate - Inspecting per batch d) ABC Rate - Purchasing per PO e) ABC Rate - Insurance per sq.ft f) ABC Rate - Cleaning per sq.ft 8) ABC Rate - Utilities per mach.hr