Krepes Manufacturing has two departments that produce small appliances. The Drilling Department allocates manufacturing overhead using machine hours as the allocation base while the Cutting Department allocates manufacturing overhead using direct labor cost as the allocation base. Data for April are shown below:
a)Determine the predetermined manufacturing overhead rate for the Drilling Department.
b)Determine the predetermined manufacturing overhead rate for the Cutting Department.
c)Determine the balances of the manufacturing overhead accounts for each department as of April 30. Indicate whether the amounts represent overallocated or underallocated manufacturing overhead.

Question

Krepes Manufacturing has two departments that produce small appliances. The Drilling Department allocates manufacturing overhead using machine hours as the allocation base while the Cutting Department allocates manufacturing overhead using direct labor cost as the allocation base. Data for April are shown below:
  a)Determine the predetermined manufacturing overhead rate for the Drilling Department.
b)Determine the predetermined manufacturing overhead rate for the Cutting Department.
c)Determine the balances of the manufacturing overhead accounts for each department as of April 30. Indicate whether the amounts represent overallocated or underallocated manufacturing overhead.

Quizplus · Accepted Answer

The Answer of Krepes Manufacturing has two departments that produce small appliances. The Drilling Department allocates manufacturing overhead using machine hours as the allocation base while the Cutting Department allocates manufacturing overhead using direct labor cost as the allocation base. Data for April are shown below:
  a)Determine the predetermined manufacturing overhead rate for the Drilling Department.
b)Determine the predetermined manufacturing overhead rate for the Cutting Department.
c)Determine the balances of the manufacturing overhead accounts for each department as of April 30. Indicate whether the amounts represent overallocated or underallocated manufacturing overhead.

Krepes Manufacturing Has Two Departments That Produce Small Appliances