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of AA Currently, overnead is applied on the basis or machine nours using a plantwide rate. However, Janine, the controller, has been wondering whether it
of AA Currently, overnead is applied on the basis or machine nours using a plantwide rate. However, Janine, the controller, has been wondering whether it might be worthwhile to use departmental overhead rates. She has analyzed the overhead costs and drivers for the various departments and decided that Welding and Finishing should base their overhead rates on machine hours and that Assembly should base its overhead rate on direct labor hours. Janine has been asked to prepare bids for two jobs with the following information: Job 1 $6,725 $1,800 Job 2 $9,340 $3,100 Direct materials Direct labor cost Direct labor hours: Welding Assembly Finishing Number of machine hours: Welding Assembly Finishing 20 60 20 10 20 70 50 60 90 50 25 125 The typical bid price includes a 35% markup over full manufacturing cost. Round all overhead rates to the nearest.cent Round all hid rices to the nearest dollar of AA Currently, overnead is applied on the basis or machine nours using a plantwide rate. However, Janine, the controller, has been wondering whether it might be worthwhile to use departmental overhead rates. She has analyzed the overhead costs and drivers for the various departments and decided that Welding and Finishing should base their overhead rates on machine hours and that Assembly should base its overhead rate on direct labor hours. Janine has been asked to prepare bids for two jobs with the following information: Job 1 $6,725 $1,800 Job 2 $9,340 $3,100 Direct materials Direct labor cost Direct labor hours: Welding Assembly Finishing Number of machine hours: Welding Assembly Finishing 20 60 20 10 20 70 50 60 90 50 25 125 The typical bid price includes a 35% markup over full manufacturing cost. Round all overhead rates to the nearest.cent Round all hid rices to the nearest dollar
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