Question
. Nu Phi Company, accumulated the following data for 2015: Milling Department manufacturing overhead .. $400,000 Finishing Department manufacturing overhead.. $176,000 Machine hours used Milling
. Nu Phi Company, accumulated the following data for 2015:
Milling Department manufacturing overhead .. $400,000
Finishing Department manufacturing overhead.. $176,000
Machine hours used
Milling Department 12,500 hours
Finishing Department.. 2,750 hours
Labor hours used
Milling Department 1,250 hours
Finishing Department.. 1,100 hours
Required:
Calculate the plant-wide manufacturing rate using machine hours as the allocation base.
Calculate the plant-wide manufacturing rate using direct labor hours as the allocation base.
Calculate department overhead rates using machine hours in Milling and direct labor hours in Finishing as the allocation bases.
Calculate department overhead rates using direct labor hours in Milling and machine hours in Finishing as the allocation bases.
Which of these allocation systems seem to be the most appropriate? Explain.
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