Question

Single Portwide and Production Department Factory Overhead Rate Methods and Product Cat Distortion motor, commemorandre to the we a t huwe production dartma Assandh Pre c omany t her production department factory overhead rate method. The foowing Pineapple Motor Company manufactures two types of specialty segle wide actory over for a t try factory overhead was budgeted for people: Assembly Deatment 5172.000 25.600 Durch Asembly Department 4,300 hours Testing Department 3.600 each department were determined from engineen records, as follows In addition, the Grect machine hours (umh) used to produce a unit of each product Commercial de Deatment | | | | Department 2.00 factory overhead allocated to the Commercial and Residential motor under the plane tary overheat method, using direct machine hours as the location base Determine the per Commercial pert and Resideramos under the mate r ia m factory method using thi s b. Determine the per un factory overhead allocated to them the location Commercial Motor per un

Answer 1

Total production overhead = Total 9825600 a Total Labour hours (6 a 12900 per unit production Overhead per Labour a $64 har(96) overhead costs Commercial motor a i5 x 64 = 896 Residential motor = 3 x64 - $192 b when multiple production department factory overhead recovery rete applied Department. Assembly Testing overhead $ 172,000 653,600 4300 8600 Direct Labor hours $40 $76 overhead cost per Labour hour 05 - 200 Commercial moor (e) Direct Labour hours $76 $20 Overhead cost of (dxe) Commercial Total overhead cast = 20476 motor per unit = $96 Residential moor Direct Labour has (9) overhead cost (dxg) Residential Tatial overhead cost = 40t 152 per unit = 9192 & 152 motormscanner
a-

Commercial motor​​​​​​ $96

Residential motor $192

b

Commercial motor $96

Residential motor $192