Question

E4-19A (similar to) Question Help Garvey's Fine Fumihings manufactures c ustom tumhure. Garvey's currently uses a planta de overhead rate based on direct bor hours to allocate its $1.300,000 of manufacturing overhead to individuals. However, Delores Gto. cwner and CEO is considering refining the company's costing system by using departmental head rates Currently, the Machining Department incurs $760,000 of manufacturing overhead while the Filing Department nours 5540,000 of manufacturing overed D ressidented machine hours ) as the primary manufacturing everhead colour in the Machining Department and direct bor(DL) hours as the primary cover in the Finishing Department Clie nt with job information) Read the Requirements X bounding the year 1. Compute the place where that avspector 25.000 hours during the year 2. Compute departmental head singhal Garvey's most incur 15 200 Min the Machining De a d 18.000 Lo n g Department during the year 3. wwwyst a wide whead how much would be located to Job 50 and 4557 & Garvey's m oved how much maturing over would be local Job 50 and 4557 5. Bad on your wars to Requirements and 4. do the planwide whead e r undercoleb ? E n Garvey'sses its future 12 fost will choice of location systems and producing? Explain

Answer 1

Requirement 1
	Total manufacturing overhead	/	Budgeted direct labor hours	=	Plantwide overhead rate
	$1,300,000	/	25000	=	$52