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Please show your work step by step. Thank you! 4. Miniae Company uses departmental manufacturing overhead rates to apply overhead. Direct labor cost is used
Please show your work step by step. Thank you!
4. Miniae Company uses departmental manufacturing overhead rates to apply overhead. Direct labor cost is used to apply manufacturing overhead in Department A and machine hours are used for Department B. Below are estimated costs for Miniae Company Direct Labor Cost Factory Overhead Direct Labor Hours Machine Hours Dept. A $66,000 $79,200 8,000 4,000 Dept. B $33,000 $60,000 9,000 | 15,000 ial costs are given below: Direct Labor Cost Factory Overhead Direct Labor Hours Machine Hours Dept. A $68,400 $78,000 8,100 4,200 Dept. B $32,000 $58,800 9,100 14,600 Calculate the predetermined overhead rate for Dept. A and for Dept. B. Predetermined Fact O/H Rate = Budget/Estimate/Predict Factory O/H Costs Budgeted/Estimated/Predicted Activity Dept. A Dept. B Calculate TOTAL Applied Overhead for both departments together. = X Applied Factory O/H Predetermined Factory O/H Rate Actual Activity Dept. A Dept. B Total Applied Overhead = -... Assume that the company uses a Plantwide rate based on Direct Labor Hours. Calculate the predetermined Plantwide rate. Predetermined Fact O/H Rate = Budget/Estimate/Predict Factory O/H Costs Budgeted/Estimated/Predicted Activity Calculate Applied Overhead using the Plantwide rate. Applied Factory O/H = Predetermined Factory O/H Rate X Actual ActivityStep by Step Solution
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