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Donkey Company manufactures two products, Standard and DeLuxe. Donkeys estimated overhead costs for next year are Machining

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Answer #1
Pedetermined overhead rate
Machining Cost Pool = $2000000/40000 hours =$50 per hour
Assembling Cost Pool = $1000000/250000 parts = $4 per part
Overhead Applies to standard
Machining ( 10000 hours *$50 per hour ) $         5,00,000
Assembling ( 90000 parts *$4 per part) $         3,60,000
Total $         8,60,000
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