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Question 8 of 9 -/1.5 Lisa works for a company that makes and sells vases, and she just completed the preliminary gross marginalysis related to
Question 8 of 9 -/1.5 Lisa works for a company that makes and sells vases, and she just completed the preliminary gross marginalysis related to the recently completed fiscal year. She followed past practice and allocated MOH costs using a plant-wide rate based on DL hours. The company makes two varieties of vases: Sturdy and Delicate Lisa wasn't convinced that using a single plant-wide rate was the best ww to go. So she divided the company's MOH costs into three Categories according to common descriptions noted in the accounting system molding driven by DL hours), polishing (driven by machine hours and packaging driven by packaging hours), She gathered the following information to assist in her analysis Sturdy Delicate Sales revenue $102.000 $63.750 $6.200 Direct material costs $18.800 Direct labor costs $11.100 $11.100 Units produced 2.000 1.250 Direct labor hours 1.000 1000 Machine hours 1.900 3,000 Der 000 2.100 Sum de od Cho9_Homework_PDR Question 8 of 9 1:5 TIL Activity Total Cost Molding $7,400 Polishing 24,500 Packaging 9.900 (a) Calculate the single plant wide rate that isa must have calculated and then allocate MOH costs to the two products using that rate (Round plant wide rate to 2 decimal places, eg. 15.25) Plant-wide rate $ /DL hour Question 8 of 9 1:5 TIL Activity Total Cost Molding $7,400 Polishing 24,500 Packaging 9.900 (a) Calculate the single plant wide rate that isa must have calculated and then allocate MOH costs to the two products using that rate (Round plant wide rate to 2 decimal places, eg. 15.25) Plant-wide rate $ /DL hour Question 8 of 9
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