Question

he U sed on n e Salsa and each case of Family Style Salsa the plant wide overhead role, determine the wea and direct labor cont is so per case of Extra Fine de che t per unit for the two products if the direct Check t he if the direct care of Family Style 8. The following data relates to Mead Company's estimated amounts for next year. Estimated: Department Department 2 Manufacturing overhead costs $ 950,000 S 650,000 Direct labor hours (DHL) 40.000 DLH 70,000 DHL What is the company's plantwide overhead rate if direct labor hours are the allocation base? (Round to two decimal places) Plantwide overhead rate is 9. Land Company uses a plantwide overhead rate with direct labor hours as the allocation base. It takes 4.0 direct-labor hours to produce each unit. Estimated: Manufacturing overhead costs Direct labor hours Department #1 S 1, 140,000 68,000 DLH Department #2 S 620,000 78,000 DLH How much overhead will be assigned to each unit produced given the above estimated amounts? Overhead assigned to each unit produced is s

Answer 1

Total Estimated Manufacturing overhead cost	$                           16,00,000
Total Estimated Direct labor hours	1,10,000	DLHs
Plantwide Overhead Rate($1,600,000/110,000 DLHs)	$                                  14.55	per direct labor hours
Units Produced by Department #1(68,000DLHs/4)	17,000
Units Produced by Department #2(78,000DLHs/4)	19,500
Total units produced by company	36,500
Manufacturing cost of Department #1	$                           11,40,000
Manufacturing cost of Department #2	$                             6,20,000
Total Manufacturing cost of the company	$                           17,60,000
Overhead assigned to each unit($1,760,000/36,500)	$                                  48.22	per unit