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H$36$

Ch$4-$Departmental overhead rates and job order costing Information

Lassen Artisans creates hand$-$painted picture frames. The frames are cast from resin in an automated process. Once the casting is done, talented artisans hand$-$paint one of fifteen designs on each frame. In the final assembly process, a worker inserts the glass pane and attaches the backing to the frame. Lassen's budget for the current year, along with the production reauirements for two of the frames it nroduces. are as follows:

$\backslash$table$[[,$Department,$],[,],[,$Casting,Painting,Assembly,$],[$Direct labor hours,,,,$],[$Machine hours,$-,60,000,12,000,],[$Manufacturing overhead cost,$28,000,-,800,],[,$$$252,000,$$$276,000,$$$48,000,]]$Department

$\backslash$table$[[$Casting$,$Painting,Assembly$],[1\mathrm{.}5,1,0\mathrm{.}25],[,-,0\mathrm{.}5]]$

Birth Announcement Frame

$\backslash$table$[[$Department$],[$Casting$,$Painting,Assembly,$],[\frac{?}{\text{b}\text{a}\text{r}}(1),1\mathrm{.}5,0\mathrm{.}50,],[0\mathrm{.}75,-,0\mathrm{.}1,]]$

Required

a$.$ Assume that Lassen Artisans uses a single predetermined overhead application rate based on direct labor hours. Calculate the rate for the current year. Show your work in Excel.

Here's one way you could solve this problem:

Predetermined

Manufacturing Overhead Costs

Overhead Rate

Cost Driver

b$.$ Using the rate you calculated in part $($a$)$ and the production requirements given in the information above, calculate the amount

Ch $4$ Excel