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The overhead rate for the Machining Department is based upon 10,000 machine hours

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Question;Support Dept.Operating Dept.Engineering & Production ControlMaterials ManagementMachiningAssemblyTotal BudgetOverhead Budget Before Allocation300,000250,000336,000234,0001,120,000Engineering & Production ControlSalaries36,00060,00024,000120,000Percentage30%50 %100%Material Management4008002800400010 %70%100%Manufacturing Overhead Costs = 1,120,000The overhead rate for the Machining Department is based upon 10,000 machine hours. The overhead rate for the Assembly Department is based upon 20,000 direct labor hours.Allocate costs using the direct methodCalculate direct labor hours or machine hours for the four departments.="times>

 

Paper#41146 | Written in 18-Jul-2015

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