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The Cayle Shirt Company manufactures shirts in two departments Cutting and Sewing. The company alocales manufacturing overhead using a single plantiderate with direct labor hours
The Cayle Shirt Company manufactures shirts in two departments Cutting and Sewing. The company alocales manufacturing overhead using a single plantiderate with direct labor hours as the allocation base. Estimated averhead costs for the year are $887,500 and estimated direct labo hours are 250,000. In June, the company incurred 15,500 direct labor hours 1. Compute the predeterminer averhear allocation rate 2 Determine the amount of overhead allocated in Junie The Coyle Shirt Company has refined its allocation system by separating manufacturing overhead casts into two cast paals-one for each department (Click the icon to view the estimated costs and alocation data for each department.) 3. Compute the predetermined overhead allocation rates for each department 4. Determine the total amount of overhead allocated in June. 1. Compute the predetermined overhead allocation rate Begin by selecting the formula to calculate the predetermined overhead (OH) allocation rate. Then enter the amounts to compute the alocation rate using a single plantwide rale with direct labor hours as the allocation base Predetermined OH allocation rate Estimated overhead cuts , Fistimated gly of the allocation base 0 More Info The estimated costs for the Oulling Department are $202 900. They will be allocated based on direct labor hours, which are estimated to be 123,000 hours for the year. The estimated costs for the Sewing Department are $231.000 Thasc casts will be located based on machine hours which are estimated to be 110,000 hours for the year. In June, the company incurred 8,000 direct labor hours in Cutting and 13,000 machine hours in Sewing. Print Done Enter any number in the edit fields and then click Check
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