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

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Support Dept. Operating Dept.;Engineering;Production Control Materials;Management Machining Assembly Total Budget;Overhead Budget Before;Allocation 300,000 250,000 336,000 234,000 1,120,000;Engineering & Production Control;Salaries 36,000 60,000 24,000 120,000;Percentage 30% 50% 20% 100%;Material Management 400 800 2800 4000;10% 20% 70% 100%;Manufacturing Overhead Costs = 1,120,000;The 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 method;Calculate direct labor hours or machine hours for the four departments.

 

Paper#81209 | Written in 18-Jul-2015

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