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Tacoma Accessories makes two laptop cases, Plastic and Leather, that require direct materials, direct labor, and overhead. The following data refer to operations expected for
Tacoma Accessories makes two laptop cases, Plastic and Leather, that require direct materials, direct labor, and overhead. The following data refer to operations expected for next quarter: Revenue Direct material Direct labor Overhead: Material handling overhead Fabrication overhead Required: Plastic $ 660,000 360,000 240,000 Leather $ 680,000 440,000 220,000 a. Material handling predetermined rate b. Fabrication predetermined rate c. Total overhead (Plastic) d. Total overhead (Leather) Tacoma uses a two-stage cost allocation system: It uses direct-material costs to allocate material handling overhead and direct-labor costs to allocate fabrication overhead costs. a. Compute the material handling overhead rate for next quarter. b. Compute the fabrication overhead rate for next quarter. c. What is the total overhead allocated to the Plastic case next quarter? d. What is the total overhead allocated to the Leather case next quarter? Total $ 1,340,000 800,000 460,000 224,000 588,800 % of direct-materials cost % of direct-labor cost
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