Question:

Budgeted total overhead: $300,200 in Assembly and $99,800 in Finishing Budgeted total direct labor hours: 5,000 in Assembly and 20,000 in Finishing Budgeted total machine hours: 38,000 in Assembly and 2,000 in Finishing

a. Compute a plantwide overhead rate using direct labor hours.

b. Compute a plantwide overhead rate using machine hours.

c. Compute departmental overhead rates using machine hours for Assembly and direct labor hours for Finishing.

d. Determine the amount of overhead that would be assigned to a product that required 5 machine hours in Assembly and 1 direct labor hour in Finishing using the answers developed in parts (a), (b), and (c).

LO1.

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