4D) Untitled Edited Verdana Regular 12 How much overhead was allocated to Produc

Question

4D) Untitled Edited Verdana Regular 12 How much overhead was allocated to Product B? (round overhead rates to two decimal places)? Questions 4 and 5 refer to the following information: X Company has two production departments, A and B. At the start of the year, the following budgeted information is available: Department A Overhead Direct labor hours Machine hours $3,800,000 50,000 110,000 Department B Overhead Direct labor hours Machine hours $1,900,000 40,000 140,000 The following information is for two specific jobs, Job 111 and Job 222, that were completed during the year: ob 111 Direct labor hours Machine hours 741 1,080 174 860 Job 222 Direct labor hours Machine hours 345 1,220 601 770 4. Using a plantwide allocation system with direct labor hours as the cost driver, what is the allocation to ob 111 (round overhead rates to two decimal places)? 5. Using a departmental allocation system with direct labor hours as the cost driver in Department A and machine hours as the cost driver in Department B, what is the allocation to Job 111 (round overhead rates to two decimal places)? 6. X Company uses account analysis to estimate total overhead costs for each month. In May, when production was 1,000 units, the plant manager classified each overhead cost item as fixed and variable as MacBook

Explanation / Answer

4)Direct labour hour overhead rate for A=3800000/50000=76
Direct labour hour overhead rate for B=1900000/40000=47.50

Job 111:=(741*76)+(174*47.50)=64581

5)Direct labour hour overhead rate for A=3800000/50000=76
machine hour overhead rate for B=1900000/140000=13.57
Job 111=(741*76)+(860*13.57)=67986.20

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