C.A.S. has two production departments, Assembly and Customizing. The company used the following estimates to calculate...

50.1K

Verified Solution

Question

Accounting

C.A.S. has two production departments, Assembly and Customizing.The company used the following estimates to calculate predeterminedoverhead rates:

                                                                                              Assembly                   Customizing

Total machinehours                                                             19,000                        15,000

Direct laborhours                                                                  4,000                          6,000

Fixed manufacturingoverhead                                              $100,700                    $63,000

Variable manufacturing overhead per machinehour            $2.00                          -

Variable manufacturing overhead per laborhour                  -                                  $3.90

Overhead rate basedon:                                                        Machinehour             Labor hour

1. What is the predetermined overhead rate for the Assemblydepartment?

2. What is the predetermined overhead rate for the Customizingdepartment?

3. If a Job 354 uses 72.2 machine hours and 100 labor hours, howmuch manufacturing overhead would be added to the costs included inJob 354?

Answer & Explanation Solved by verified expert
4.3 Ratings (699 Votes)
Requirement 1 Assembly Department A Total Fixed Overheads 10070000 B Total machine Hours 19000 AB Predetermined Overhead rate 530 Predetermined overhead rate for the Assembly department 530 per Machine Hour Requirement 2 Customizing A Total Fixed Overheads    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

C.A.S. has two production departments, Assembly and Customizing.The company used the following estimates to calculate predeterminedoverhead rates:                                                                                              Assembly                   CustomizingTotal machinehours                                                             19,000                        15,000Direct laborhours                                                                  4,000                          6,000Fixed manufacturingoverhead                                              $100,700                    $63,000Variable manufacturing overhead per machinehour            $2.00                          -Variable manufacturing overhead per laborhour                  -                                  $3.90Overhead rate basedon:                                                        Machinehour             Labor hour1. What is the predetermined overhead rate for the Assemblydepartment?2. What is the predetermined overhead rate for the Customizingdepartment?3. If a Job 354 uses 72.2 machine hours and 100 labor hours, howmuch manufacturing overhead would be added to the costs included inJob 354?

Other questions asked by students