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PROBLEM 14_(20 pts.) Wild Wigs, Inc. assigns overhead to jobs in two processes, Sewing and Coloring. The basis for assigning overhead in the Sewing Department
PROBLEM 14_(20 pts.) Wild Wigs, Inc. assigns overhead to jobs in two processes, Sewing and Coloring. The basis for assigning overhead in the Sewing Department is machine hours. Direct labor hours is used to assign overhead in the Coloring Department. The following estimates were made before this year began: Sewing Dept. Coloring Dept. Total company Overhead costs $60,000 $45,000 $105,000 Direct labor hours 1,300 1,500 2,800 DLH Machine hours 1,200 100 1,300 MH One of the jobs worked on this year was for the Warren Studios. The following are actual data for that job. Sewing Dept. Coloring Dept. Total for the job Direct Materials $3,500 $400 $3,900 Direct Labor cost $9,400 $1,200 $10,600 Direct labor hours 240 40 280 DLH Machine hours 180 70 250 MH a) Calculate the overhead rate for each department. b) Prepare a schedule showing the total cost of the Warren Studios job
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