Oro Company has two departments with the following production data. It has historically used a single-plant-wide overhead rate based on direct labor cost Exercise 1 Welding 160,000 $ 40,000 $ 4,000 Fabrication 240,000 10,000 1,000 2,000 Manufacturing overhead costs Direct labor cost Direct labor hours $ 3 100 Machine hours 4 a) Single Plant-Wide Overhead Rate 16 17 Compute departmental overhead rates. Assume welding applies overhead using direct labor hours and fabrication using machine hours per DL hr b) Departmental Overhead Rate- Welding 20 per mach. Hr c) Departmental Overhead Rate - Fabrication 23 24 Loco Company sells 2 products (standard & deluxe) and it identifies the following overhead costs, activities, and drivers for 2011. Exercise 2 26 Expected Actitvity Expected 27 Driver Cost Activity Parts 2,000 Handling materials Storing materials Inspecting product Purchasing Insuring the factory Cleaning workspace Factory utilities Total overhead cost $16,000 29 Square feet 4,000 $4,000 30 Batches 800 $32,000 31 Purchase orders 2,000 20,000 20,000 $40,000 32 Square feet $8,000 33 Square feet $4,000 34 Machine hours $12,000 2,000 35 $116,000 36 JI Estimated production data for the two products is as follows: Deluxe 38 Standard 39 Volume (in units) 15,000 5,000 40 1,200 800 Parts 41 D A Storage space used Batches made Purchase orders Workspace used Machine hours 1,200 2,800 42 400 400 43 600 1,400 44 4,000 16,000 45 1,200 800 46 47 48 Calculate the following ABC overhead rates (round to the penny). 49 per part per sq. ft per batch a) ABC Rate Handling b) ABC Rate - Storing c) ABC Rate Inspecting d) ABC Rate Purchasing e) ABC Rate Insurance f) ABC Rate Cleaning 50 51 X 52 per PO 53 per sq. ft X 54 per sq. ft X 55 per mach. hr g) ABC Rate Utilities X 56 57 Autosave WeberMgrl5 Saved File Home Insert Page Layout Formulas O Search Data Review View Help X Calibri A A 11 Wrap Text General Paste A BIU- Merge & Center $ % 8 E Conditional Format Formatting Table Clipboard Font Alignment Numben Styles D16 A B F G h) Handling costs assigned i) Storage costs assigned j)Inspecting costs assigned k) Purchasing costs assigned )Insurance costs assigned m) Cleaning costs assigned n) Utility costs assigned o) Total overhead 59 60 61 62 63 64 65 66 67 68 Standard Deluxe p) Overhead cost per unit 69 70 Exercise 3 Use the information from exercise 2, but assume Loco uses a single plant-wide overhead rate based on machine hours. 71 72 73 a) Single plant-wide rate per mach. hr. X 74 X D16 B G C A Standard Deluxe 68 p) Overhead cost per unit 69 X X 70 Exercise 3 Use the information from exercise 2, but assume Loco uses a single plant-wide overhead rate based on machine hours. 71 72 a) Single plant-wide rate per mach. hr. 73 X 74 Deluxe Standard 75 b) Total overhead assigned 76 X X c) Overhead cost per unit 77 78 79