Plata Company produces two products (A & B) and uses a predetermined overhead rate to apply...

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Plata Company produces two products (A & B) and uses a predetermined overhead rate to apply overhead. Plata currently applies overhead using departmental overhead rates where overhead is applied on the basis of machine hours in Department X and on the basis of direct labor hours in Department Y. At the beginning of the year, the following estimates were provided: Department X Department Y 20,000 12,000 12,000 8,000 $60,000 $48,000 Actual results reported by products during the year were as follows: Product A Product B Direct labor hours Machine hours Overhead cost Direct labor hours: Department X Department Y Machine hours: $67,000 $75.000 Department X Department Y What would be the overhead assigned to Product B $99.000 7,500 6,000 $48,000 11,000 7,000 4.800 2,400 7,800 5.000 Plata Company produces two products (A & B) and uses a predetermined overhead rate to apply overhead. Plata currently applies overhead using departmental overhead rates where overhead is applied on the basis of machine hours in Department X and on the basis of direct labor hours in Department Y. At the beginning of the year, the following estimates were provided: Department X Department Y 20,000 12,000 12,000 8,000 $60,000 $48,000 Actual results reported by products during the year were as follows: Product A Product B Direct labor hours Machine hours Overhead cost Direct labor hours: Department X Department Y Machine hours: $67,000 $75.000 Department X Department Y What would be the overhead assigned to Product B $99.000 7,500 6,000 $48,000 11,000 7,000 4.800 2,400 7,800 5.000

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