Helio Company has two products: A and B. The annual production and sales of Product A...
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Helio Company has two products: A and B. The annual production and sales of Product A is 1,850 units and of Product B is 1,250 units. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. Product A requires 0.3 direct labor-hours per unit and Product B requires 0.6 direct labor-hours per unit. The total estimated overhead for next period is $100,485. What is the company's predetermined overhead rate? Answer is complete but not entirely correct. Company's predetermined overhead rate 748 Expected Activity Estinated Overhead Costs Product 1 Product 2 $320,000 150,000 30,000 $500,000 Activities and Activity Measures Hand-processing (direct labor-hours) Setting up equipment (number of setups) Administering parts inventories (number of part types) 45,000 9,000 110 55,000 21,000 90 ransformation Corporation has provided the information set forth above regarding the overhead to be allocated between the two roducts it produces: CDE and EFG. What is the activity rate for the hand-processing units activity? O $3.20 per setup O $5.00 per setup O $150.00 per part-type O $3.20 per direct labor-hour Helio Company has two products: A and B. The annual production and sales of Product A is 1,850 units and of Product B is 1,250 units. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. Product A requires 0.3 direct labor-hours per unit and Product B requires 0.6 direct labor-hours per unit. The total estimated overhead for next period is $100,485. What is the company's predetermined overhead rate? Answer is complete but not entirely correct. Company's predetermined overhead rate 748 Expected Activity Estinated Overhead Costs Product 1 Product 2 $320,000 150,000 30,000 $500,000 Activities and Activity Measures Hand-processing (direct labor-hours) Setting up equipment (number of setups) Administering parts inventories (number of part types) 45,000 9,000 110 55,000 21,000 90 ransformation Corporation has provided the information set forth above regarding the overhead to be allocated between the two roducts it produces: CDE and EFG. What is the activity rate for the hand-processing units activity? O $3.20 per setup O $5.00 per setup O $150.00 per part-type O $3.20 per direct labor-hour
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Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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