Question
The Fast & Furious Company produces two products: toy planes and toy race cars. They use departmental overhead rates for the two production departments: molding
The Fast & Furious Company produces two products: toy planes and toy race cars.
They use departmental overhead rates for the two production departments: molding and finishing.
Molding uses machine hours to assign overhead and Finishing uses direct labor hours. 50,000 planes and 250,000 race cars are produced.
Please find the following data:
Molding Finishing Total Estimated Overhead $250,000 $100,000 $350,000
Actual Overhead $240,000 $120,000 $360,000
Expected Direct Labor Hours planes 5,000 5,000 10,000
race cars 5,000 35,000 40,000
Expected Machine Hours planes 17,000 3,000 20,000
race cars 3,000 7,000 10,000
Actual Direct Labor Hours planes 4,500 5,300 10,000
race cars 5,500 34,500 40,000
Actual Machine Hours planes 16,500 3,500 20,000
race cars 3,200 6,800 10,000
How much overhead is applied to the planes?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started