Question
Plantwide vs. Departmental OH Rates Roddickton Manufacturing Co. has gathered the following information to develop predetermined OH rates for the year. The company produces a
Plantwide vs. Departmental OH Rates Roddickton Manufacturing Co. has gathered the following information to develop predetermined OH rates for the year. The company produces a wide variety of energy-saving products that are processed through two departments, Assembly (automated) and Finishing (labor intensive). Assembly Finishing Budget total overhead $720,480 $279,440 Budgeted total direct labor hours 12,000 56,000 Budgeted total machine hours 91,200 5,600 Note: For the following questions, round your answers to two decimal places. a. Compute a plantwide predetermined OH rate using direct labor hours. Note: Round your answers to two decimal places. Plantwide rate using DLHs Answer b. Compute a plantwide predetermined OH rate using machine hours. Note: Round your answers to two decimal places. Plantwide rate using MHs Answer c. Compute departmental predetermined OH rates using machine hours for Assembly and direct labor hours for Finishing. Assembly department rate using MHs Answer Finishing department rate using DLHs Answer d. Determine the amount of overhead that would be assigned to a product that required five machine hours in Assembly and one direct labor hour in Finishing using the answers developed in (a), (b), and (c). Total OH assigned under (a) Answer Total OH assigned under (b) Answer Total OH assigned under (c)
Roddickton Manufacturing Co. has gathered the following information to develop predetermined OH rates for the year. The company produces a wide variety of energy- saving products that are processed through two departments, Assembly (automated) and Finishing (labor intensive). Assembly Finishing $720,480 $279,440 Budget total overhead Budgeted total direct labor hours Budgeted total machine hours 12,000 56,000 91,200 5,600 Note: For the following questions, round your answers to two decimal places. a. Compute a plantwide predetermined OH rate using direct labor hours. Note: Round your answers to two decimal places. Plantwide rate using DLHs $ b. Compute a plantwide predetermined OH rate using machine hours. Note: Round your answers to two decimal places. Plantwide rate using MHs $ c. Compute departmental predetermined OH rates using machine hours for Assembly and direct labor hours for Finishing. Assembly department rate using MHs $ Finishing department rate using DLHs $ d. Determine the amount of overhead that would be assigned to a product that required five machine hours in Assembly and one direct labor hour in Finishing using the answers developed in (a), (b), and (c). Total OH assigned under (a) $ Total OH assigned under (b) $ Total OH assigned under (c) $
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