Question

Saved Help Save & Exit Su Check my wor Chrom Co. manufactures two models, the XL and RD. It also has two departments, assembly and finishing. The company wants to assign overhead costs to its two different models to better understand the profitability of each model. The Tableau Dashboard provides data for our analysis. Estimated Overhead Costs by Department Estimated Direct Labor Hours & Machine Hours by Department 150,000 hrs 125,000 hrs 100,000 hrs Finishing "V06000 75,000 hrs - Assembly و انه Assembly Total: $8,000,000 50,000 hrs n Assembly 25,000 hrs Finishing Finishing ~ 30000 25000 Direct Labor Hours Machine Hours < Prev 12 of 27 !!! Next > DU

Answer 1

Solution 1 and 2:

1. Plantwide overhead rate based on Direct labor hours
Estimated Overhead costs	8000000	64.00	per direct labor hour
Estimated Direct labor hours	125000
2. Plantwide overhead rate based on Machine hours
Estimated Overhead costs	8000000	80.00	per machine hour
Estimated Machine hours	100000

Solution 3:

Activity Cost pool	Expected costs	Expected cost drivers	Activity Overhead rate
Maintenance	6000000	100000	60.00	per MH
Supervision	2000000	125000	16.00	per DLH