Question: need help with this question QUESTION 1 (10 marks) MB Manufacturing Ply Lid is developing departmental overhead rates based on direct-labour hours for its two
need help with this question

QUESTION 1 (10 marks) MB Manufacturing Ply Lid is developing departmental overhead rates based on direct-labour hours for its two production departments, Finishing and Assembly. T Department employs 75 people. Each person in these two departments works 1,680 hours per year. The production-related overhead costs for the Finishing Dep Department costs are budgeted at $258,000. Two service departments, Maintenance and Computing, directly support the two production departments. These ser $300.000, respectively. The production departments' overhead rates cannot be determined until the service departments' costs are allocated. The following sched Computing Department's output by the various departments. Using Department Service Maintenance Computing Finishing Assembly Department 3,000 8:000 Maintenance maintenance hours) 4,000 2,000 14,000 Computing (hours) is Use the step down method to allocate service department costs. Allocate the Computing Department's costs first. Calculate the overhead rates per direct-labour hour for the Finishing Department and the Assembly Department. (8 marks) Explain briefly the main difference between the two other methods of ment cost allocation. (2 marks)
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