The firm is considering a switch to departmental rates for MOH. XYZ will use machine hours...

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The firm is considering a switch to departmental rates for MOH. XYZ will use machine hours (MH) to allocate Assembly Dept. costs. Of the $2,430,000 of MOH, the firm determined that $1,620,000 is related to the Assembly Dept. and $810,000 is related to the Packaging Dept. . Basic units • Deluxe units . Total 6,000 MH in Assembly 30.000 MH in Assembly 36,000 MH in Assembly a) Assembly dept. allocation rate= Assembly dept. MOH allocated to Basic = Assembly dept. MOH allocated to Deluxe = XYZ will use labor dollars (DLS) to allocate Packaging Dept. costs • Basic units $990,000 DL$ in Packaging • Deluxe units $360.000 DL$ in Packaging • Total $1,350,000 DL$ in Packaging b) Packaging dept. allocation rate= Packaging dept. MOH allocated to Basic = Packaging dept. MOH allocated to Deluxe = c) Total cost for Basic Total cost for Deluxe = d) Cost/unit for Basic = Cost/unit for Deluxe The firm is considering a switch to departmental rates for MOH. XYZ will use machine hours (MH) to allocate Assembly Dept. costs. Of the $2,430,000 of MOH, the firm determined that $1,620,000 is related to the Assembly Dept. and $810,000 is related to the Packaging Dept. . Basic units • Deluxe units . Total 6,000 MH in Assembly 30.000 MH in Assembly 36,000 MH in Assembly a) Assembly dept. allocation rate= Assembly dept. MOH allocated to Basic = Assembly dept. MOH allocated to Deluxe = XYZ will use labor dollars (DLS) to allocate Packaging Dept. costs • Basic units $990,000 DL$ in Packaging • Deluxe units $360.000 DL$ in Packaging • Total $1,350,000 DL$ in Packaging b) Packaging dept. allocation rate= Packaging dept. MOH allocated to Basic = Packaging dept. MOH allocated to Deluxe = c) Total cost for Basic Total cost for Deluxe = d) Cost/unit for Basic = Cost/unit for Deluxe

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