Estimated over cost
department finishing: 3,000,000
assembly: 5,000,000
Direct Labor:
Assembly: 100,000
Finishing: 25,000 hours
Machinery
Assembly: 70,000
Finishing: 30,000 hours
Activity cost pool:
sUPERVISION: 2,000,000
Maintenance: 6,000,000
Activity:
supervision: 125,000 direct hours
Machinery: 100,000 machine hours
Homework Answers
Answer-1-
Departmental overhead rate (assembly) = Estimated overhead costs/Estimated direct labor hours
= $5,000,000/100,000
= $50 per direct labor hour
2.
Departmental overhead rate (Finishing) = Estimated overhead costs/Estimated machine hours
= $3,000,000/30,000
= $100 per machine hour
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Estimated over cost
department finishing: 3,000,000
assembly: 5,000,000
Direct Labor:
Assembly: 100,000
Finishing: 25,000 hours
Machinery...
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DATA FOR GRAPHS: 1) Est. Overhead costs by Department a) Finishing: $3,000,000 b) assembly: $5,000,000 2)Estimated...
DATA FOR GRAPHS:
1) Est. Overhead costs by Department
a) Finishing: $3,000,000
b) assembly: $5,000,000
2)Estimated
Direct Labor Hours & Machine Hours by Department
a) Direct labor hours: Finishing=25,000 hr , Assembly=100,000
hr
b) Machine hours: finishing =30,000 hr , assembly = 70,000 hr
3) Est. Overhead costs by activity
a) supervision : $2,000,000
b) maintenace : $6,000,000
Cost Driver & Exp. Usage by Activity
a) Supervison: 125,000 direct labor hours
b) Maintance: 100,000 machine hours
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DATA FOR GRAPHS:
1) Est. Overhead costs by Department
a) Finishing: $3,000,000
b) assembly: $5,000,000
2)Estimated
Direct Labor Hours & Machine Hours by Department
a) Direct labor hours: Finishing=25,000 hr , Assembly=100,000
hr
b) Machine hours: finishing =30,000 hr , assembly = 70,000 hr
3) Est. Overhead costs by activity
a) supervision : $2,000,000
b) maintenace : $6,000,000
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a) Supervison: 125,000 direct labor hours
b) Maintance: 100,000 machine hours
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