What is the activity rate that would be used for molding?  What is the activity rate that would be used for painting?

What is the total overhead allocated to molding for the past month? By how much is the molding overhead under- or over-applied? 

What is the total overhead allocated to painting for the past month?  By how much is the painting overhead under- or over-applied?   

If the company continued to use the plantwide rate, what is the total overhead allocated to production for the past month? 

 Is overhead under- or over-allocated for the month if they continued to use the plantwide overhead rate? 

By how much is the overhead under- or over-applied if the company continued to use the plantwide rate?

 

David Inc. manufactures bobblehead dolls of famous baseball players. These dolls are in high demand from fans. The company currently uses a plantwide overhead rate in order to allocate overhead to each job. They use direct labour hours as their cost driver. The following estimates are available for the upcoming year: Direct Overhead Machine Labour Costs Hours Hours Molding $ 240,000 40.000 15,000 Painting $280.000 24.000 35.000 Total $520,000 64.000 50,000 Management would like to explore the use of activity based costing. For molding, the company will use machine hours as the activity driver and for painting they will use direct labour hours as the activity driver. Actual data for the past month is as follows: Actuai Actual Actual Direct Overhead Machine Labour Costs Hours Hours Molding $24,000 3,500 1,150 Painting $23.000 2,200 3.100 Total $47,000 5,700 4.250