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Off the Beaten Path Running Company has started to produce running apparel in addition to the trail running shoes that they have manufactured for years.
Off the Beaten Path Running Company has started to produce running apparel in addition to the trail running shoes that they have manufactured for years. They feel that a departmental overhead rate would best reflect their overall manufacturing overhead usage. Based on research the following information was gathered for the upcoming year: Machining Department Finishing Department Estimated Manufacturing Overhead $1,000,000 $300,000 by Department Trail Running Shoes 420.000 machine hours 12,000 direct labor hours Running Apparel 80,000 machine hours 68,000 direct labor hours Manufacturing overhead is driven by machine hours for the machining department and direct labor hours for the finishing department. At the end of the year, the following information was gathered related to the production of the trail running shoes and running apparel: Machining Department Finishing Department Trail Running Shoes 422,000 hours 11.500 hours Running Apparel 77,000 hours 69.000 hours ... O A. $412,750 OB. $1,299,875 O C. $325,000 OD. $411,451 Off the Beaten Path Running Company has started to produce running apparel in addition to the trail running shoes that they have manufactured for years. They feel that a departmental overhead rate would best reflect their overall manufacturing overhead usage. Based on research the following information was gathered for the upcoming year: Machining Department Finishing Department Estimated Manufacturing Overhead $1,000,000 $300,000 by Department Trail Running Shoes 420.000 machine hours 12,000 direct labor hours Running Apparel 80,000 machine hours 68,000 direct labor hours Manufacturing overhead is driven by machine hours for the machining department and direct labor hours for the finishing department. At the end of the year, the following information was gathered related to the production of the trail running shoes and running apparel: Machining Department Finishing Department Trail Running Shoes 422,000 hours 11.500 hours Running Apparel 77,000 hours 69.000 hours ... O A. $412,750 OB. $1,299,875 O C. $325,000 OD. $411,451
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