Melbourne Manufacturing has two production departments,Assembly and Finishing.The total overhead cost in Assembly is $200?000 and Finishing is $30?000.Assembly is driven by machine hours,and Finishing by labour hours.There are 6000 labour hours and 10?000 machine hours in Assembly,while there are 7500 labour hours and 6000 machine hours in Finishing.
Required:
A.What is the overhead rate per unit for Assembly,and for Finishing?
B.How much overhead is applied to a product that uses 3 labour hours in Assembly and 2 labour hours in Finishing,as well as 3 machine hours in Assembly and 4 machine hours in Finishing?

Question

Quizplus · Accepted Answer

The Answer of Melbourne Manufacturing has two production departments,Assembly and Finishing.The total overhead cost in Assembly is $200?000 and Finishing is $30?000.Assembly is driven by machine hours,and Finishing by labour hours.There are 6000 labour hours and 10?000 machine hours in Assembly,while there are 7500 labour hours and 6000 machine hours in Finishing.
Required:
A.What is the overhead rate per unit for Assembly,and for Finishing?
B.How much overhead is applied to a product that uses 3 labour hours in Assembly and 2 labour hours in Finishing,as well as 3 machine hours in Assembly and 4 machine hours in Finishing?

Melbourne Manufacturing Has Two Production Departments,Assembly and Finishing