Question: Example 1 In the last chapter, we assumed that Life Fitness allocated its manufacturing overhead (MOH) costs using one predetermined MOH rate. Estimated the total

Example 1 In the last chapter, we assumed that Life Fitness

Example 1 In the last chapter, we assumed that Life Fitness allocated its manufacturing overhead (MOH) costs using one predetermined MOH rate. Estimated the total manufacturing overhead costs for the year ($1 million) Estimated of the total amount of the allocation base (62,500 DL hours) for the year. Each elliptical cross-trainer required about 10 direct labor hours to make. Each treadmill requires 10 direct labor hours to complete. 1. What is the company's Plantwide" overhead rate? 2. Allocate manufacturing overhead using the Plantwide" overhead rate. Job 101 (One elliptical): Job 102 (One treadmill): Total Plantwide MOH $1 Million Machining Department ($400,000 of MOH) Assembly Department ($600,000 of MOH) Total Eliptical: 1 DL he Eliptical: 9Dhe - 10 DL hrs Treadmil: 4DL he Treadmil: 6 DL h - 10 hrs 3. Calculate the Departmental" overhead rates for Job 101 and Job 102. Machining Dept: Assembly Dept: 4. Allocate the Manufacturing Overhead to Job 101 and Job 102. Job 101 (One elliptical): Job 102 (One treadmill)

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