Question
You are a management internee at the Gadgets Company. The company operates with two Divisions, Xen and Yen and produces designer toy cars. For Division
You are a management internee at the Gadgets Company. The company operates with two Divisions, Xen and Yen and produces designer toy cars. For Division Xen, the management applies overhead costs on the basis of direct labor cost, and for Division Yen, it applies overhead costs on the basis of machine-hours. The company completed Job FIN-E in late 2017. The companys books reveal the following additional information:
Budgeted Amounts Division Xen Division Yen
Labor cost (Direct) $283 000 $268 000
Manufacturing overhead $328 000 $285 000
Machine-hours 61 300 mh 51 400 mh
Actual data for Job FIN-E Division Xen Division Yen
Direct materials used $21 100 $26 300
Labor cost (Direct) $21 500 $24 400
Machine-hours 9500 mh 6300 mh
Required: Your supervisor has asked you to work out the following, showing all your calculations (round off to two decimal places):
The manufacturing overhead rate (budgeted) for Division Xen.
The manufacturing overhead rate (budgeted) for Division Yen.
The total overhead cost (budgeted) allocated to Job FIN-E.
The unit cost for job FIN-E if the Job required Gadgets to produce 1065 designer toy cars.
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