Ryan Corporation manufactures auto steering systems. Prime cost and machine time estimates for one unit of the
Question:
Ryan Corporation manufactures auto steering systems. Prime cost and machine time estimates for one unit of the product for the year follow:
Direct materials $
Direct labor $hour $
Machine hours
This product requires hours of direct labor in Department A and hours in Department B Also, it requires machine hours in Department A and machine hours in Department B Using output as the activity, the factory overhead costs estimated in these two departments follow:
A B
Variable cost $ $
Fixed cost
Management expects the firm to produce units during the year.
Required:
Assume the total actual overhead base used was equal to the estimated base for the units produced. Assume that factory overhead was applied on the basis of direct labor hours. Compute the predetermined plantwide factory overhead rate.
If factory overhead were applied on the basis of machine hours, what would be the plantwide overhead rate?
If the company produced units during the year, what was the total amount of applied factory overhead in each department in requirements and
Compute the departmental overhead rate and amount of applied overhead for Department A using direct labor hours as the allocation base and for Department B using machine hours as the allocation base.
Fundamentals Of Electric Circuits
ISBN: 9780073301150
3rd Edition
Authors: Matthew Sadiku, Charles Alexander