Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

What is the overhead per unit for race cars? (round to 3 decimal places)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Practitioners Blueprint To Construction Auditing

Authors: Ron Risner

1st Edition

0894137263, 978-0894137266

More Books

Students also viewed these Accounting questions

Question

7. Identify six intercultural communication dialectics.

Answered: 1 week ago