Question: please show all calculations Problem 2 - Overhead Allocation (24 points) Della Lishus owns and operates Della Lishus Cakes, Inc. Della Lishus Cakes makes specialty

 please show all calculations Problem 2 - Overhead Allocation (24 points)
Della Lishus owns and operates Della Lishus Cakes, Inc. Della Lishus Cakes
please show all calculations

Problem 2 - Overhead Allocation (24 points) Della Lishus owns and operates Della Lishus Cakes, Inc. Della Lishus Cakes makes specialty cakes for Weddings and Birthdays. Her business has 2 departments: The Baking Department and the Decorating Department. Her budget for 2018 indicates the following: Department Activity Overhead Cost Driver Quantity Baking Measuring $20,000 # of ingredients 125 Mixing $16,000 Machine hours 2,300 $36,000 Decorating Mixing Application $14,400 $ 4,400 Machine hours $10,000 Direct Labor Hours 2,300 18,000 Additional production information follows: Birthday Cakes Wedding Cakes 374 45 96 80 Units produced # of ingredients Machine hours Direct Labor hours 1,098 6,440 1,202 11,560 Calculate the following overhead allocations on the next page: 1. Using the plantwide overhead rate based on Direct Labor Hours, calculate the overhead cost assigned to each birthday cake and each wedding cake. 2. Using ABC, calculate the overhead assigned to each birthday cake and each wedding cake, Round all per unit calculations to the nearest penny, round all other calculations to the nearest dollar. 3. Using the plantwide overhead rate based on Direct Labor Hours, calculate the overhead cost assigned to each birthday cake and each wedding cake. Plantwide overhead rate: Birthday Cakes Wedding Cakes per DLH 4. Using ABC, calculate the overhead assigned to each birthday cake and each wedding cake. Baking: Measuring: per ingredient Mixing: per machine hour Decorating: Mixing: per machine hour Application: per direct labor hr Birthday Cakes Wedding Cakes Baking Department: Measuring: Mixing: Decorating Department: Mixing Application: Total Overhead + units Overhead per unit

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!