Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Prescott makes handheld calculators in two models-basic and professional. Prescott estimated $1,060,500 of manufacturing overhead and 505,000 machine hours for the year. The basic model

image text in transcribed
image text in transcribed
Prescott makes handheld calculators in two models-basic and professional. Prescott estimated $1,060,500 of manufacturing overhead and 505,000 machine hours for the year. The basic model actually consumed 140,000 machine hours and the professional model consumed 365,000 machine hours. Prescott wants to refine its costing system by allocating overhead using departmental rates. The estimated $1,060,500 of manufacturing overhead has been divided into two cost pools-Assembly Department and Packaging Department. The following data have been compiled: Click the icon to view the data) Read the requirements Requirement 1. Compute the predetermined overhead allocation rates using machine hours as the allocation base for the Assembly Department and direct labor hours for the Packaging Department. Begin by selecting the formula to calculate the predetermined overhead (OH) allocation rate. Then enter the amounts to compute the allocation rate for each department. (Enter the allocation rates to the nearest cent..) Predetermined OH allocation rate Assembly Packaging Requirement 2. How much overhead is allocated to the basic model? To the professional model? Begin by selecting the formula to allocate overhead (OH) costs. - Allocated mig, overhead costs Compute the total overhead allocated to the basic model, and then compute the total overhead allocated to the professional model. Basic Model Professional Model Manufacturing overhead Assembly Manufacturing overhead-Packaging Total manufacturing overhead cost i Xic Data Table - Assembly Packaging Department 340,500 Department 720,000 Total Overhead costs $ $ 1,060,500 125,500 MHT 274,500 MHT 14,500 MHT I. 90,500 MHT 140,000 MHT 365,000 MHT Machine hours: Basic Model Professional Model Direct labor hours: Basic Model Professional Model 20,000 DLHO 47,500 DLHT 95,000 DLH 472,500 DLHO 115,000 DLHO 520,000 DLHO Print Done

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Padhukas Students Handbook On Auditing And Assurance Including Multiple Choice Questions For CA Inter

Authors: CA G. Sekar, CA B Saravana Prasath

18th Edition

9390303087, 978-9390303083

More Books

Students also viewed these Accounting questions

Question

What is meant by planning or define planning?

Answered: 1 week ago

Question

Define span of management or define span of control ?

Answered: 1 week ago

Question

What is meant by formal organisation ?

Answered: 1 week ago

Question

What is meant by staff authority ?

Answered: 1 week ago