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finish the following requirements given the below informationScore: 0 of 5 pts 1 of 6 (0 complete) HW Score: 0%, 0 of 30 pts E4-19A (similar to) Question Help Allens Fine Furnishings ma

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Answer #1

1. Plantwide Overhead rate = $1290000 / 30000 = $43 per labor hour

2.

Activity Cost Cost Driver Cost per Cost driver
Machining Department $       870,000 14500 Machine hours $            60.00 per machine hour
Finishing Department $       420,000 17500 Labor hours $            24.00 per labor hour
Total $   1,290,000

3.
Overhead Allocation
Job 450 = 5 x $43 = $215
Job 455 = 5 x $43 = $215

4.
Overhead Allocation
Job 450 = 2 x $60 + 4 x $24 = $216
Job 455 = 5 x $60 + 3 x $24 = $372

5.
Plantwide overhead rate undercost both the jobs, with huge difference in Job 455 which is clearly shown in part 3 & 4.

Yes choice will matter, since if overhead is allocated as per departmental rates, selling price for Job 455 should be lot higher

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