Multiple production department factory overhead rate method Instructions Multipl

Question

Multiple production department factory overhead rate method Instructions Multiple-Department Overhead Table-Blenders Instructions 231,700.00 150,420.00 382,120.00 1 Assembly Department 2 Test and Pack Department Total The direct labor information for the production of 7,945 units of each product is as follows: Department Assembly Test and Pack Blender 840 dlh 2,525 dh Toaster oven 2,470 745 Total 3,310 dih 3,270 dlh Four Finger Appliance used direct labor hours to allocate production department factory overhead to products Check My Work All work saved.

Explanation / Answer

Req A: Production deptt factory OH rate based on DLH: Assembly deptt: Estimated OH/ Estimated DLH $ 231,700 / 3310 DLH = $ 70 per DLH 46 Test and Pack department: Estimated OH/ Estimated DLH $ 150420 / 3270 DLH = $ 46 per unit Req B: BLENDER Activity Activity Activity Activity Usage Rate Cost Assembly 840 70 58800 Test and Pack 2525 46 116150 Total 174950 Units 7945 factory Oh per unit 22.02 Req C: TOASTER OVEN Activity Activity Activity Activity Usage Rate Cost Assembly 2470 70 172900 Test and Pack 745 46 34270 Total 207170 Units 7945 factory Oh per unit 26.08

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