The Francis Corporation operates two service and two producing departments in its production of go carts....
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The Francis Corporation operates two service and two producing departments in its production of go carts. The budgeted overhead costs directly associated with the departments and other pertinent data for an upcoming month are as follows: Overhead Costs Machine Hours Number of Employees Service & Production Departments Data Service Departments Maintenance $144,000 20 Personnel $80,000 16 Production Departments Tooling $280,000 30,000 60 Assembly $320,000 20,000 100 Personnel costs are allocated based on the number of employees, and maintenance costs are allocated based on machine hours. Assume the Assembly department uses direct labor hours to allocate its cost is overhead costs. For the upcoming month, the estimated direct labor hours is estimated is 19,200 hours. Question What will be the predetermined overhead rate for the Assembly department for the upcoming month? The Francis Corporation operates two service and two producing departments in its production of go carts. The budgeted overhead costs directly associated with the departments and other pertinent data for an upcoming month are as follows: Overhead Costs Machine Hours Number of Employees Service & Production Departments Data Service Departments Maintenance $144,000 20 Personnel $80,000 16 Production Departments Tooling $280,000 30,000 60 Assembly $320,000 20,000 100 Personnel costs are allocated based on the number of employees, and maintenance costs are allocated based on machine hours. Assume the Assembly department uses direct labor hours to allocate its cost is overhead costs. For the upcoming month, the estimated direct labor hours is estimated is 19,200 hours. Question What will be the predetermined overhead rate for the Assembly department for the upcoming month?
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The organization has two types of Department i Service Department ii Production Departme... View the full answer
Related Book For
Cost Management A Strategic Emphasis
ISBN: 978-0077733773
7th edition
Authors: Edward Blocher, David Stout, Paul Juras, Gary Cokins
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