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Solve a,b,c IOB ORDER COSTING: PLANT-WIDE VS. DEPARTMENTAL OVERHEAD RATES om Cabinets makes stereo cabinets for new homes and remodeling jobs. Dan cabinet to fit
Solve a,b,c IOB ORDER COSTING: PLANT-WIDE VS. DEPARTMENTAL OVERHEAD RATES om Cabinets makes stereo cabinets for new homes and remodeling jobs. Dan cabinet to fit special places and uses solld wood throughout, making his cab- uch higher quality than can be bought in the normal cabinet market. The labor, and assembly hours for the three departments as well as the overhead s. Dan's Custom ch department used to make the cabinets are in the table below Dan's Custom Cabinets Cuting Dept. Stain and Paint ssembly General Plan $24,000 $100,000 $60,000 $36,0 Direct labor hours Machine hours Assenbly hours 4,000 6,000 8,000 2,000 6,000 N/A 4.000 2,000 10,000 Each cabinet requires a different amount of work in each department. For three cabi- net orders, the following are the details: Job 408 $300 $120 Job 409 $500 $250 Job 410 Material Diredt labor 750 $375 Direct labor hours-Slain and Paint Machine hours Cutting Mechine hours-Stain and Paint Machine hours-Assembly Assembly hours-Stain and Paint REQUIRED: a. Using direct labor hours as the driver, develop an overhead rate for the entire factory, Make sure to include general overhead in your calculations. b. What does each job cost using the plant-wide rate on direct labor hours? Do not forget to charge out the actual labor to each job. g machine hours as the driver, develop an overhead rate for the entire fac- Make sure to include general overhead in your calculations. c. Usin tory. MANAGEMENT ACCOUNTING
Solve a,b,c
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