= Homework: Chapter 5 Homework Question 10, E5-21 (similar to) HW Score: 26.67%, 8 of 30 points Save Part 1 of 10 O Points: 0 of 2 Parts World (PW) designs and produces automotive parts. In 2020, actual variable manufacturing overhead is $318,000. PW's simple costing system allocates variable manufacturing Question list K overhead to its three customers based on machine-hours and prices its contracts based on full costs. One of its customers has regularly complained of being charged noncompetitive prices, so PW's controller Duncan Gilbert realizes that it is time to examine the consumption of overhead resources more closely. He knows that there are three main departments that consume overhead resources: design, production, and engineering. Interviews with the department personnel and examination of time records yield the following detailed information: Question 5 (Click the icon to view the information.) Read the requirements. Question 6 Requirement 1. Compute the manufacturing overhead allocated to each customer in 2020 using the simple costing system that uses machine-hours as the allocation base. Question 7 Determine the formula needed to calculate overhead using the simple costing method and then calculate PW's manufacturing overhead rate for 2020. (Round your answer to the nearest cent.) Question 8 Manufacturing overhead rate per machine hour O Question 9 Question 10 Help me solve this Etext pages Get more help - Clear all Check answer= Homework: Chapter 5 Homework Question 10, E5-21 (similar to) HW Score: 26.67%, 8 of 30 points Save Part 1 of 10 O Points: 0 of 2 Parts World (PW) designs and produces automotive parts. In 2020, actual variable manufacturing overhead is $318,000. PW's simple costing system allocates variable manufacturing Question list K overhead to its three customers based on machine-hours and prices its contracts based on full costs. One of its customers has regularly complained of being charged noncompetitive prices, so PW's controller Duncan Gilbert realizes that it is time to examine the consumption of overhead resources more closely. He knows that there are three main departments that consume overhead resources: design, production, and engineering. Interviews with the department personnel and examination of time records yield the following detailed information: Question 5 (Click the icon to view the information.) Read X Question 6 Data table Requ ses machine-hours as the allocation base. Question 7 Usage of Cost Drivers by Customer Contract Deter neare Manufacturing head rate for 2020. (Round your answer to the Pacific Holden Department Cost Driver Overhead in 2020 Motors Motors Jerdon Auto Question 8 Design CAD-design-hours 38,000 115 202 83 Engineering Engineering-hours 30,000 85 78 237 Production Machine-hours 250,000 O Question 9 220 3,300 1,480 $ 318,000 Total O Question 10 Print Done Help me solve this Etext pages Clear all Check answerE Homework: Chapter 5 Homework Question 10, E5-21 (similar to) HW Score: 26.67%, 8 of 30 points Save Part 1 of 10 O Points: 0 of 2 Parts World (PW) designs and produces automotive parts In 2020_actual variable manufacturing overhead is $318 000_PW's simple costing system allocates variable manufacturing Question list K overhead to its three custom larly complained of being charged noncompetitive prices, so PW's controller D X e knows that there are three main departments that consume overhead reso Requirements of time records yield the following detailed information: Question 5 (Click the icon to view th 1 . Compute the manufacturing overhead allocated to each customer in 2020 Read the requirements. using the simple costing system that uses machine-hours as the allocation base. Question 6 2. Compute the manufacturing overhead allocated to each customer in 2020 using department-based manufacturing overhead rates. Requirement 1. Compute th 3 . Comment on your answers in requirements 1 and 2. Which customer do you think was complaining about being overcharged in the simple system? If the es machine-hours as the allocation base. Question 7 Determine the formula need new department-based rates are used to price contracts, which customer(s) ead rate for 2020. (Round your answer to the nearest cent.) will be unhappy? How would you respond to these concerns? 4. How else might PW use the information available from its Question 8 department-by-department analysis of manufacturing overhead costs? 5. PW's managers are wondering if they should further refine the department-by-department costing system into an ABC system by O Question 9 identifying different activities within each department. Under what conditions would it not be worthwhile to further refine the department costing system into an ABC system? Question 10 Print Done Help me solve this Etext pages Get more help - Clear all Check