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PLEASE SHOW YOUR WORK 1. (6 points) Hill Manufacturing uses departmental rates to apply manufacturing overhead costs to products. Manufacturing overhead costs are applied on
PLEASE SHOW YOUR WORK
1. (6 points) Hill Manufacturing uses departmental rates to apply manufacturing overhead costs to products. Manufacturing overhead costs are applied on the basis of machine-hours in the Machining Department and on the basis of direct labor-hours in the Assembly Department. At the beginning of 201X, the following estimates were provided for the coming year: L Machining Assembly 10,000 90,000 Direct labor hours Machine-hours 100,000 5,000 $80,000 $720,000 Direct labor cost $250,000 Manufacturing overhead costs $360,000 Job #846 required work in both the machining and assembly departments. The accounting records show the following data for Job #846: Machining Assembly Direct labor hours 50 120 101 Machine-hours 170 $2,700 $1,600 Direct material cost $400 Direct labor cost 900 At the end of the year, the accounting records of the company showed the following: Assembly Machining Direct labor hours 10,100 92,000 110,000 Machine hours 5,200 $81,500 $745,000 Direct labor cost $279,000 $377,200 Manufacturing overhead costs a. What is the overhead allocation rate for each department: Assembly Machining b. For the year, was overhead overallocated or underallocated in the Machining Department? By how much? c. What was the actual overhead rate for the Machining DepartmentStep by Step Solution
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