Question
The total factory overhead for Dada Inc. is budgeted for the year at $225,000. Dada manufactures two types of men's pants: jeans and Khakis. The
The total factory overhead for Dada Inc. is budgeted for the year at $225,000. Dada manufactures two types of men's pants: jeans and Khakis. The jeans and khakis each require 0.15 direct labor hour for manufacture. Each product is budgeted for 15,000 units of production for the year. Determine:
a) Total number of budgeted direct labor hours for the year
b) The single plantwide factory overhead rate
c) The factory overhead allocated per unit for each product using the single plantwide factory overhead rate
Carlton Peters Metal Fabrication Department incurred $420,000 of factory overhead cost in producing gears and sprockets. The two products consumed a total of 6,000 direct machine hours. Of that amount, sprockets consumed 3,200 direct machine hours.
a) Determine the total amount of factory overhead that should be allocated to sprockets using machine hours as the allocation base.
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