Mudgee Manufacturing has two production departments,Mixing and Finishing.The total overhead cost in Mixing is $100?000 and Finishing is $60?000.Mixing is driven by machine hours,and Finishing by labour hours.There are 7000 labour hours and 20?000 machine hours in Mixing,while there are 10?000 labour hours and 15?000 machine hours in Finishing.
Required:
A.What is the overhead rate per unit for Mixing,and for Finishing?
B.How much overhead is applied to a product that uses 5 labour hours in Mixing and 6 labour hours in Finishing,as well as 7 machine hours in Mixing and 8 machine hours in Finishing?
C.Following on from part b,how much overhead would have been applied to the product if a plantwide overhead rate based on machine hours had been used?

Question

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The Answer of Mudgee Manufacturing has two production departments,Mixing and Finishing.The total overhead cost in Mixing is $100?000 and Finishing is $60?000.Mixing is driven by machine hours,and Finishing by labour hours.There are 7000 labour hours and 20?000 machine hours in Mixing,while there are 10?000 labour hours and 15?000 machine hours in Finishing.
Required:
A.What is the overhead rate per unit for Mixing,and for Finishing?
B.How much overhead is applied to a product that uses 5 labour hours in Mixing and 6 labour hours in Finishing,as well as 7 machine hours in Mixing and 8 machine hours in Finishing?
C.Following on from part b,how much overhead would have been applied to the product if a plantwide overhead rate based on machine hours had been used?

Mudgee Manufacturing Has Two Production Departments,Mixing and Finishing