Truss Inc. has two producing departments: assembly and finishing. The company has been using a plant-wide predetermined overhead rate based on direct labour cost. The following estimates were made for the current year: a. Calculate a budgeted factory overhead rate for the current year based on direct labour cost.
b. Calculate separate departmental overhead rates based upon direct labour cost for assembly and machine hours for finishing.

Question

Truss Inc. has two producing departments: assembly and finishing. The company has been using a plant-wide predetermined overhead rate based on direct labour cost. The following estimates were made for the current year:  a. Calculate a budgeted factory overhead rate for the current year based on direct labour cost.
b. Calculate separate departmental overhead rates based upon direct labour cost for assembly and machine hours for finishing.

Quizplus · Accepted Answer

The Answer of Truss Inc. has two producing departments: assembly and finishing. The company has been using a plant-wide predetermined overhead rate based on direct labour cost. The following estimates were made for the current year:  a. Calculate a budgeted factory overhead rate for the current year based on direct labour cost.
b. Calculate separate departmental overhead rates based upon direct labour cost for assembly and machine hours for finishing.

Truss Inc Has Two Producing Departments: Assembly and Finishing