Question
Siding Company manufactures 3 types of siding for homes: Tin, Wood and Vinal. The budgeted factory overhead cost is $3,000,000. Overhead is allocated to the
Siding Company manufactures 3 types of siding for homes: Tin, Wood and Vinal. The budgeted factory overhead cost is $3,000,000. Overhead is allocated to the three products on the basis of direct labor hours. The products have the following budgeted production volumes and direct labor hours / unit:
Expected Volume Direct Labor Hours / Unit
Tin 5,000 units 5.0
Wood 4,000 units 3.0
Vinal 2,000 units 7.0
Calculate 1: the Single Plantwide Overhead Rate, and 2: The overhead allocated to each product. Round any answers to 2 decimal places. Hint: you will need to calculate the total activity base as it is not given!
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