Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

need help with B diesel cant figure it out I have everything else. this is what I did to try and get my answer for

need help with B diesel cant figure it out I have everything else. this is what I did to try and get my answer for diesel 116*1.8=208.8 and 47*2.9=136.3. we add 208.8 and 136.3 we get 345.1 and computer says wrong what am I doing wrong need help figuring diesel thanks Laura landers

he management of Firebolt Industries Inc. manufactures gasoline and diesel engines through two production departments, Fabrication, and Assembly. Management needs accurate product cost information in order to guide product strategy. Presently, the company uses a single plantwide factory overhead rate for allocating factory overhead to the two products. However, management is considering the multiple production department factory overhead rate method. The following factory overhead was budgeted for Firebolt:

1

Fabrication Department factory overhead

$614,800.00

2

Assembly Department factory overhead

246,750.00

3

Total

$861,550.00

Direct labor hours were estimated as follows:

Fabrication Department

5,300

hours

Assembly Department

5,250

Total

10,550

hours

In addition, the direct labor hours (dlh) used to produce a unit of each product in each department were determined from engineering records, as follows:

Production Departments

Gasoline Engine

Diesel Engine

Fabrication Department

2.9 dlh

1.8 dlh

Assembly Department

1.8

2.9

Direct labor hours per unit

4.7 dlh

4.7 dlh

a. Determine the per-unit factory overhead allocated to the gasoline and diesel engines under the single plantwide factory overhead rate method, using direct labor hours as the activity base . If required, round all per-direct labor hours and per-unit answers to the nearest cent.

Gasoline engine

383.00per unit

Diesel engine

383.00per unit

b. Determine the per-unit factory overhead allocated to the gasoline and diesel engines under the multiple production department factory overhead rate method, using direct labor hours as the activity base for each department. If required, round all per-unit answers to the nearest cent.

Gasoline engine

421.00per unit

Diesel engine

per unit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions