Wholesome Oats makes several lines of breakfast cereals using large batch manufacturing. It takes three departmentsPrepping, Blending,
Question:
Wholesome Oats makes several lines of breakfast cereals using large batch manufacturing. It takes three departments—Prepping, Blending, and Boxing—to make the products. It also has a general plant overhead pool for scheduling, inspection, and related activities, as suggested by the following table. Currently all of the overhead is charged out based on direct labor hours.
REQUIRED:
a. Calculate the plant-wide overhead rate for Wholesome Oats using direct labor hours as the driver.
b. How much overhead gets charged to each department?
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Related Book For 
Managerial Accounting An Integrative Approach
ISBN: 9780999500491
2nd Edition
Authors: C J Mcnair Connoly, Kenneth Merchant
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