Bervine, Inc produces two different products (bomper and woobles) using two different service department, Machine and...

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Bervine, Inc produces two different products (bomper and woobles) using two different service department, Machine and inspection. The Machine department uses machine hour as the base of overhead cost allocations, while the inspection department uses the no of inspection as the base for the overhead costs allocation. The estimated budget cost of machine is $800000 while the estimate budget cost of Machine is $800000 while the estimated budget cost of inspection is $60000. The actual machine and inspection costs for the year $750000 and $75000. Calculate total overhead allocated to bompers if it uses 40% of total machine hour and 60% of total insoection? Bervine, Inc produces two different products (bomper and woobles) using two different service department, Machine and inspection. The Machine department uses machine hour as the base of overhead cost allocations, while the inspection department uses the no of inspection as the base for the overhead costs allocation. The estimated budget cost of machine is $800000 while the estimate budget cost of Machine is $800000 while the estimated budget cost of inspection is $60000. The actual machine and inspection costs for the year $750000 and $75000. Calculate total overhead allocated to bompers if it uses 40% of total machine hour and 60% of total insoection?

Answer rating: 100% (QA)

To calculate the total overhead allocated to bompers we first need to determine the overhead rates f... View the full answer