Question
The following information is available pertaining to the Production Division of Clarkson Enterprises: Assembly Dept. Finishing Dept. Total Overhead costs $10,000 $30,000 $40,000 Direct labor
The following information is available pertaining to the Production Division of Clarkson Enterprises: Assembly Dept. Finishing Dept. Total Overhead costs $10,000 $30,000 $40,000 Direct labor hours 8,000 2,000 10,000 Machine hours 3,000 5,000 8,000 Production information pertaining to Job 4X5: Assembly Dept. Finishing Dept. Total Prime costs $2,380 $-0- $2,380 Direct labor hours 280 -0- 280 Machine hours -0- -0- -0- Units produced 500 -0- 500
1. Refer to Figure 5-7. What is the plant wide overhead rate based on direct labor hours?
2. Refer to Figure 5-7. Using the plant wide overhead rate based on direct labor hours what is the cost of Job 4X5?
3. Refer to Figure 5-7. What is the overhead rate for the Finishing Department based on machine hours?
4. Refer to Figure 5-7. What are the total overhead costs assigned to Job 4X5, assuming the Assembly and Finishing Departments use direct labor hours and machine hours for their bases, respectively?
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