Outer Limits, Inc. produces fencing units which require two processes, A and B, to complete. The best selling type of fence is made of pvc. Information related to the 8,000 units of pvc fencing produced annually is shown below.
Outer Limits' total expected overhead costs and related overhead data are shown below. The company uses departmental overhead rates based on machine hours in department A and direct labor hours in departmentB.
Determine the total amount of overhead assigned to each unit of pvc fencing.

Question

Outer Limits, Inc. produces fencing units which require two processes, A and B, to complete. The best selling type of fence is made of pvc. Information related to the 8,000 units of pvc fencing produced annually is shown below. 
Outer Limits' total expected overhead costs and related overhead data are shown below. The company uses departmental overhead rates based on machine hours in department A and direct labor hours in departmentB. 
Determine the total amount of overhead assigned to each unit of pvc fencing.

Quizplus · Accepted Answer

The Answer of Outer Limits, Inc. produces fencing units which require two processes, A and B, to complete. The best selling type of fence is made of pvc. Information related to the 8,000 units of pvc fencing produced annually is shown below. 
Outer Limits' total expected overhead costs and related overhead data are shown below. The company uses departmental overhead rates based on machine hours in department A and direct labor hours in departmentB. 
Determine the total amount of overhead assigned to each unit of pvc fencing.