Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Johny Pickles Brewing Company takes custom orders for seasonal brews and has two separate departments, brewing and packaging. The brewing department allocates overhead based

The Johny Pickles Brewing Company takes custom orders for seasonal brews and has two separate departments, brewing and packaging. The brewing department allocates overhead based on batches produced while the packaging department allocates overhead to orders based on machine hours worked in the department. The estimated overhead for the brewing department for the year is $18,548 and the packaging department is estimated at $11,550. It is estimated that the brewery will produce 312 batches during the year and will spend 1,221 hours running the equipment to package those batches. At the end of the year, it is determined that 339 batches were actually produced and 1,440 hours were used to package the product. The overhead amounts actually incurred by the brewing and packaging departments were $22,564 and $10,689 respectively. What is the predetermined overhead rate for the packaging department? Round your answer to two 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

Cima Learning System Management Accounting Performance Evaluation Edition

Authors: Robert Scarlett

4th Edition

0750684305, 978-0750684309

More Books

Students also viewed these Accounting questions