Departmental Overhead Rates Lansing, Inc., provided the following data for its two producing departments: Estimated overhead...
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Departmental Overhead Rates Lansing, Inc., provided the following data for its two producing departments: Estimated overhead Molding $375,000 Polishing Total $80,000 $455,000 Direct labor hours (expected and actual): Form A 1,000 5,000 6,000 Form B 4,000 15,000 19,000 Total 5,000 20,000 25,000 Machine hours: Form A Form B Total 3,500 3,000 6,500 1,500 5,000 2,000 5,000 3,500 10,000 Machine hours are used to assign the overhead of the Molding Department, and direct labor hours are used to assign the overhead of the Polishing Department. There are 25,000 units of Form A produced and sold and 50,000 of Form B. Required: 1. Calculate the overhead rates for each department. Molding Polishing 75 per machine hour 4 per direct labor hour 2. Using departmental rates, assign overhead to the two products and calculate the overhead cost per unit. Round your answers to the nearest cent. Unit Overhead Cost Assigned unit overhead cost for Form A 4.37 X per unit Assigned unit overhead cost for Form B per unit How does this compare with the plantwide rate unit cost, using direct labor hours? Relative to the plantwide rate, the cost increased for Form A and decreased for Form B. Departmental Overhead Rates Lansing, Inc., provided the following data for its two producing departments: Estimated overhead Molding $375,000 Polishing Total $80,000 $455,000 Direct labor hours (expected and actual): Form A 1,000 5,000 6,000 Form B 4,000 15,000 19,000 Total 5,000 20,000 25,000 Machine hours: Form A Form B Total 3,500 3,000 6,500 1,500 5,000 2,000 5,000 3,500 10,000 Machine hours are used to assign the overhead of the Molding Department, and direct labor hours are used to assign the overhead of the Polishing Department. There are 25,000 units of Form A produced and sold and 50,000 of Form B. Required: 1. Calculate the overhead rates for each department. Molding Polishing 75 per machine hour 4 per direct labor hour 2. Using departmental rates, assign overhead to the two products and calculate the overhead cost per unit. Round your answers to the nearest cent. Unit Overhead Cost Assigned unit overhead cost for Form A 4.37 X per unit Assigned unit overhead cost for Form B per unit How does this compare with the plantwide rate unit cost, using direct labor hours? Relative to the plantwide rate, the cost increased for Form A and decreased for Form B.
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