The Roanoke plant of the Virginia Company has two production departments: Extrusion and Assembly. The plant produces two products: P and Q. Cost information for the production departments is given below: The following table presents activity information about the departments and products:
Required:
a. Compute the predetermined overhead rate for each department if Extrusion uses machine hours and Assembly uses labor hours.
b. Calculate the per unit overhead rate for each product if 80,000 units of P were produced and 90,000 units of Q were produced.

Question

The Roanoke plant of the Virginia Company has two production departments: Extrusion and Assembly. The plant produces two products: P and Q. Cost information for the production departments is given below:  The following table presents activity information about the departments and products:
  Required: 
a. Compute the predetermined overhead rate for each department if Extrusion uses machine hours and Assembly uses labor hours.
b. Calculate the per unit overhead rate for each product if 80,000 units of P were produced and 90,000 units of Q were produced.

Quizplus · Accepted Answer

The Answer of The Roanoke plant of the Virginia Company has two production departments: Extrusion and Assembly. The plant produces two products: P and Q. Cost information for the production departments is given below:  The following table presents activity information about the departments and products:
  Required: 
a. Compute the predetermined overhead rate for each department if Extrusion uses machine hours and Assembly uses labor hours.
b. Calculate the per unit overhead rate for each product if 80,000 units of P were produced and 90,000 units of Q were produced.

The Roanoke Plant of the Virginia Company Has Two Production