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Please refer to both pictures and answer all parts (a-g) of the question for a good review. Freeze Frame, Incorporated produces cameras that require three
Please refer to both pictures and answer all parts (a-g) of the question for a good review.
Freeze Frame, Incorporated produces cameras that require three processes, A, B, and C, to complete. Digital camera model #789 is the best-selling camera produced. Information related to the 550,000 units of digital camera model #789 produced annually is shown below:
Direct materials
$ 450.000
Direct Labor
Department A (7,000 DLH $21 per DLH) $ 147.000
Department B (25,000 DLH $19 per DLH) $ 475.000
Department C (10,000 DLH $26 per DLH) $ 260,000
Machine Hours
Department A
Department B
Department C
42,000
23.000
38,000
MH
MH
MH
Freeze Frame's total budgeted overhead costs and related overhead data are shown in the following table:
Direct labor hours 90,000
Machine hours 67,500
Budgeted overhead $ 540,000
Department A Department B Department C
DLH
75,000
MH
135,000
$ 675,000
DLH 42,000
DLH
MH 53,200
MH
$ 399,000
a. Compute a departmental overhead rate for department A based on machine hours.
b. How much overhead is associated with model 789 from department A?
c. Compute a departmental overhead rate for department B based on direct labor hours.
d. How much overhead is associated with model 789 from department B?
e. Compute a departmental overhead rate for department C based on machine hours.
f. How much overhead is associated with model 789 from department C?
g. What is the per unit cost of the 550,000 units of model 789?
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