Question

Question 1-30 Point An automotive parts plant consisting of three production de an En partments (A, B & C), an gineering Services support department. The annual cost of the engineering services is allocated to the production departments on the basis of Direct Labor Dollors, However, each Department Overhead Cost Rate D.L. Hours DepartmentD.L Hours D.L. Dollars Overhead Cost$ Other Annual Cost $ 40,000 20,000 10,000 800,000 300,000 100,000 400,000 100,000 75,000 Engineering 300,000 Services a. b. Estimate the Overhead Cost Rate for each of the production departments Estimate the cost of a Job Order, requiring $2000 of Material Cost, and 40,30, and 15 Hours in each of Departments A, B, and C. (Spread Sheet Bonus Question) Understanding that the plant budget is developed semi-annually, while the Overhead Cost allocation method stays the same. Develop, and demonstrate a Spreadsheet that the company could use to estimate Production Cost at each department. Please email your answer to c.

Answer 1

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