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Roddickton Manufacturing Co. has gathered the following information to develop predetermined OH rates for 2013. The company produces a wide variety of energy-saving products that are processed through two departments, Assembly (automated) and Finishing (labor intensive).

  • Budgeted total overhead: $600,400 in Assembly and $199,600 in Finishing
  • Budgeted total direct labor hours: 10,000 in Assembly and 40,000 in Finishing
  • Budgeted total machine hours: 76,000 in Assembly and 4,000 in Finishing

a. Compute a plantwide predetermined OH rate using direct labor hours.
$ per DLH

b. Compute a plantwide predetermined OH rate using machine hours.
$ per MH

c. Compute departmental predetermined OH rates using machine hours for Assembly and direct labor hours for Finishing. Round your answers to the nearest cent.

Assembly $ per MH
Finishing $ per DLH

d. Determine the amount of overhead that would be assigned to a product that required five machine hours in Assembly and one direct labor hour in Finishing using the answers developed in (a), (b), and (c). Round your answers to the nearest cent.

Overhead assigned using answer from part (a) $
Overhead assigned using answer from part (b) $
Overhead assigned using answer from part (c) $

Image text transcribed for accessibility Plantwide vs. departmental OH rates Roddickton Manufacturing Co. has gathered the following information to develop predetermined OH rates for 2013. The company produces a wide variety of energy-saving products that are processed through two departments, Assembly (automated) and Finishing (labor intensive). Budgeted total overhead: $600,400 in Assembly and $199,600 in Finishing Budgeted total direct labor hours: 10,000 in Assembly and 40,000 in Finishing Budgeted total machine hours: 76,000 in Assembly and 4,000 in Finishing Compute a plantwide predetermined OH rate using direct labor hours. per DLH Compute a plantwide predetermined OH rate using machine hours. per MH Compute departmental predetermined OH rates using machine hours for Assembly and direct labor hours for Finishing. Round your answers to the nearest cent. Determine the amount of overhead that would be assigned to a product that required five machine hours in Assembly and one direct labor hour in Finishing using the answers developed in (a), (b), and (c). Round your answers to the nearest cent.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M9965094

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