1%23 , Search. , Review Test S Help Save & E Chec Xie Company identified the fol
ID: 2413726 • Letter: 1
Question
1%23 , Search. , Review Test S Help Save & E Chec Xie Company identified the following activities, costs, and activity drivers for 2017. The company manufactures two types of go-karts Deluxe and Basic. Expected vity Expected Activity Costs 900,000 105,000 175,000 300,000 75,000 625,000 100,000 parts Inspecting product Processing purchase orders Paying suppliers 1,500 batches 700 orders 500 invoices Insuring the factory Designing packaging 40,000 Square feet 2 models 1. Compute a single plantwide overhead rate, assuming that the company assigns overhead based on 125,000 budgeted direct labor hours. 2. In January 2017, the Deluxe model required 2,500 direct labor hours and the basic model required 6,000 direct labor hours. Assign overhead costs to each model using the single plantwide overhead rate. Complete this question by entering your answers in the tabs belowExplanation / Answer
ANSWER:
1. SINGLE PLANT WIDE OVERHEAD RATE:
2. TOTAL OVERHEAD COST IN JANUARY 2017:
Total Dt. Hours Required
Plant wide OH Rate
Total Overhead Cost
Deluxe model
2500
17.44
43600
Basic model
6000
17.44
104640
Total Dt. Hours Required
Plant wide OH Rate
Total Overhead Cost
Deluxe model
2500
17.44
43600
Basic model
6000
17.44
104640
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