Homework Answers
Answer
- Factory overhead can be calculated as:
>Estimated factory overhead / estimated direct labor hours, or
> Estimated factory overhead / estimated machine hours
> Estimated factory overhead / estimated direct labor dollars - Once the overhead rates are determined, the overhead is allocated to the units produced.
- Hence, total units produced cannot be the allocation base for allocating factory overhead.
- Correct Answer = Option ‘C’ Total units produced.
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All of the following can be used as an allocation base for calculating factory overhead rates...
16. A widely used activity base for developing factory overhead rates in highly automated settings is...
16. A widely used activity base for developing factory overhead rates in highly automated settings is a. direct labor hours b. direct labor dollars c. direct materials d. machine hours
Calculating Manufacturing Overhead Rates Windsor Company, accumulated the following data for 2017: Milling Department manufacturing overhead...
Calculating Manufacturing Overhead Rates Windsor Company, accumulated the following data for 2017: Milling Department manufacturing overhead Finishing Department manufacturing overhead 76,800 Machine hours used S187,200 9,000 hours Milling Department Finishing Department 2,000 hours Labor hours used Milling Department 1,000 hours 1,000 hours Finishing Department Required a. Calculate the plantwide manufacturing overhead rate using machine hours as the allocation base $60 x per machine hour b. Calculate the plantwide manufacturing overhead rate using direct labor hours as the lcaion base x...
Manufacturing Overhead Allocation Rate
Andrews Company manufactures blenders, offering its customers two model options – a basic model and a deluxe model. Each model of blender goes through the same two-step production process – it is assembled in the Assembly Department and packaged for sale in the Packaging Department. For the month that is about begin, Andrews Company is estimating manufacturing overhead costs of $680,000 in the Assembly Department and $270,000 in the Packaging Department. The company also estimates the following usage of direct...
Manufacturing Overhead Allocation Base and Calculating the Cost of Jobs. Brenner Company expects to incur $3,000,000...
Manufacturing Overhead Allocation Base and Calculating the Cost of Jobs. Brenner Company expects to incur $3,000,000 in manufacturing overhead costs this year. During the year, it expects to use 50,000 direct labor hours at a cost of $600,000 and 80,000 machine hours. Required: Prepare a predetermined overhead rate based on direct labor hours, direct labor cost, and machine hours. Why might Brenner Company prefer to use machine hours to allocate manufacturing overhead? Using each of the predetermined overhead rates calculated...
2. Multiple Production Department Factory Overhead Rates The total factory overhead for Bardot Marine Company is...
2. Multiple Production Department Factory Overhead Rates The total factory overhead for Bardot Marine Company is budgeted for the year at $1,238,250, divided into two departments: Fabrication, $1,053,000, and Assembly, $185,250. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require two direct labor hours in Fabrication and two direct labor hours in Assembly. The bass boats require four direct labor hours in Fabrication and one direct labor hour in Assembly. Each product is budgeted for...
Multiple Production Department Factory Overhead Rates The total factory overhead for Bardot Marine Company is budgeted...
Multiple Production Department Factory Overhead Rates The total factory overhead for Bardot Marine Company is budgeted for the year at $495,000, divided into two departments: Fabrication, $382,500, and Assembly, $112,500. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require four direct labor hours in Fabrication and three direct labor hours in Assembly. The bass boats require two direct labor hours in Fabrication and two direct labor hours in Assembly. Each product is budgeted for 3,000...
Multiple Production Department Factory Overhead Rates The total factory overhead for Bardot Marine Company is budgeted...
Multiple Production Department Factory Overhead Rates The total factory overhead for Bardot Marine Company is budgeted for the year at $505,500, divided into two departments: Fabrication, $321,000, and Assembly, $184,500. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require two direct labor hours in Fabrication and two direct labor hours in Assembly. The bass boats require two direct labor hours in Fabrication and four direct labor hours in Assembly. Each product is budgeted for 3,000...
Amberjack Company is trying to decide on an allocation base to use to assign manufacturing overhead...
Amberjack Company is trying to decide on an allocation base to use to assign manufacturing overhead to jobs. The company has always used direct labor hours to assign manufacturing overhead to products, but it is trying to decide whether it should use a different allocation base such as direct labor dollars or machine hours. Actual and estimated data for manufacturing overhead, direct labor cost, direct labor hours, and machine hours for the most recent fiscal year are summarized here: Estimated...
Multiple Production Department Factory Overhead Rates The total factory overhead for Bardot Marine Company is budgeted...
Multiple Production Department Factory Overhead Rates The total factory overhead for Bardot Marine Company is budgeted for the year at $1,481,250, divided into two departments: Fabrication, $881,250, and Assembly, $600,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require one direct labor hour in Fabrication and four direct labor hours in Assembly. The bass boats require four direct labor hours in Fabrication and four direct labor hours in Assembly. Each product is budgeted for 7,500...
Multiple Production Department Factory Overhead Rates The total factory overhead for Bardot Marine Company is budgeted...
Multiple Production Department Factory Overhead Rates The total factory overhead for Bardot Marine Company is budgeted for the year at $1,365,000, divided into two departments: Fabrication, $1,071,000, and Assembly, $294,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require four direct labor hours in Fabrication and three direct labor hours in Assembly. The bass boats require two direct labor hours in Fabrication and one direct labor hour in Assembly. Each product is budgeted for 7,000...
Calculating Manufacturing Overhead Rates Windsor Company, accumulated the following data for 2017: Milling Department manufacturing overhead Finishing Department manufacturing overhead 76,800 Machine hours used S187,200 9,000 hours Milling Department Finishing Department 2,000 hours Labor hours used Milling Department 1,000 hours 1,000 hours Finishing Department Required a. Calculate the plantwide manufacturing overhead rate using machine hours as the allocation base $60 x per machine hour b. Calculate the plantwide manufacturing overhead rate using direct labor hours as the lcaion base x...
Multiple Production Department Factory Overhead Rates The total factory overhead for Bardot Marine Company is budgeted for the year at $1,481,250, divided into two departments: Fabrication, $881,250, and Assembly, $600,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require one direct labor hour in Fabrication and four direct labor hours in Assembly. The bass boats require four direct labor hours in Fabrication and four direct labor hours in Assembly. Each product is budgeted for 7,500...
Multiple Production Department Factory Overhead Rates The total factory overhead for Bardot Marine Company is budgeted for the year at $1,365,000, divided into two departments: Fabrication, $1,071,000, and Assembly, $294,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require four direct labor hours in Fabrication and three direct labor hours in Assembly. The bass boats require two direct labor hours in Fabrication and one direct labor hour in Assembly. Each product is budgeted for 7,000...
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