Question

(Click the icon to view the job information.) Read the requirements. Wang per RCTI. TOUT $ Finishing 440,000 17,600 25 per DL
HW Score: 62.50% 10.89 of %E4-19A (similar to) Ouestion Help Evars Fine Furnishings manufactures upscale custom furniture. E
are. Evans currently uses a plantwide overhead rate based on direct labor hours to allocate its $1,070 the companys costing
ture. Evans currently uses a plantwide overhead rate based on direct labor hours to allocate its $1,07 ng the companys cost
Requirement 4. If Evans uses departmental overhead rates, how much manufacturir Use the following table to calculate the amo


< 2 of 6 (6 complete) niture. Evans currently uses a plantwide overhead rate based on direct labor hours to allocate its $1.


Score: 4.45 of 7 pts 2 of 6 (6 complete) HW Score: 69.27%, 20.78 of 30 pts %E4-19A (similar to) Question Help Evans Fine Fur
omework: Chapter 04 Graded Homework ore: 4.45 of 7 pts 2 of 6 (6 complete) E4-19A (similar to) HW Score: 69.27%, 20.78 of 30


E4-19A (similar to) Question Help Evars Fine Furnishings manufactures upscale custom furniture. Evans currently uses a plan
Job 450 Job 455 350 Requirement 4. ME s uses departmental overhead roles, how much manufacturing overhead would be allocated
core: 4.45 of 7 pts 2 of 6 (6 complete) HW Score: 69.27%, 20.78 of 30 pts %E4-19A (similar to) Question Help Evars Fine Furn
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Answer #1
1 Plantwide overhead rate=Estimated manufacturing overhead/Expected direct labor hours=1070000/21400=$50 per direct labor hour
2 Departmental overhead rate
Machining department=Estimated overhead/Estimated machine hours=630000/15000=$ 42 per machine hour
Finishing department=Estimated overhead/Estimated direct labor hours=440000/17600=$ 25 per direct labor hour
3 Manufacturing overhead allocated=Plantwide overhead rate*Direct labor hours used
Job 450 Job 455
Plantwide overhead rate a 50 50
Direct labor hours used b 6 5
Manufacturing overhead allocated a*b 300 250
4 Manufacturing overhead allocated:
Machining department=Departmental overhead rate*Machine hours used
Finishing department=Departmental overhead rate*labor hours used
Job 450 Job 455
Machining department:
Departmental overhead rate a 42 42
Machine hours used b 1 4
Manufacturing overhead allocated c=a*b 42 168
Finishing department:
Departmental overhead rate d 25 25
Labor hours used e 6 5
Manufacturing overhead allocated f=d*e 150 125
Total MOH allocated c+f 192 293
5 MOH allocated is more when using plantwide overhead rate
Hence,It will overcost the job
This will also cause a difference in pricing when using the above two methods
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