Fact Company allocates $6 overhead to each unit produced. The - 14674

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yousafbhutta

yousafbhutta

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  • From: Business,
  • Posted on: Sun 04 Nov, 2012
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Request Description

 

Fact Company allocates $6 overhead to each unit produced. The company uses a plantwide overhead rate with machine hours as the allocation base. Given that the company spends one machine hour per unit, use the amounts below to calculate the number of machine hours expected in department 2.

 

  Estimated:

Department 1

Department 2

  Manufacturing overhead costs

$153,000  

$152,000  

  Direct labor hours

8,800 DLH  

12,900 DLH  

  Machine hours

40,000 MH  

? MH  

 

               10,833 MH.

                9400 MH.

                152,400 MH.

                13,700 MH.

                305,000 MH.

Solution Description

 

Fact Company allocates $6 overhead to each unit produced. The company uses a plantwide overhead rate with machine hours as the allocation base. Given that the company spends one machine hour per unit, use the amounts below to calculate the number of machine hours expected in department 2.

 

  Estimated: