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need help asap Rivera Company manufactured two products, A and B, during April. For purposes of product costing, an overhead rate of $4.40 per direct-labor
need help asap
Rivera Company manufactured two products, A and B, during April. For purposes of product costing, an overhead rate of $4.40 per direct-labor hour was used, based on budgeted annual factory overhead of $770,000 and 175,000 budgeted annual direct-labor hours, as follows: Budgeted Overhead Budgeted Hours Department 1 $450,000 75,000 Department 2 $320,000 100,000 $770,000 175,000 The number of labor hours required to manufacture each of these products was: Product A Product B In Department 1 2 In Department 2 2 4 Total 6 During April, production units for products A and B were 2,500 and 3,000, respectively. Required: () Using a plantwide overhead rate, what are total overhead costs assigned to products A and B. respectively? (2) Using departmental overhead rates, what are total overhead costs assigned to products A and B, respectively? (3) Assume that materials and labor costs per unit of Product B are $20 and that the selling price is established by adding 40% of total product costs to cover profit and selling and administrative expenses. What difference in seling price would result from the use of departmental overhead rates compared to the plantwide rate? 4 Step by Step Solution
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