Which types of overhead allocation methods result in the use of more than one overhead rate during the same time quizlet?

Lake Erie Company uses a plantwide overhead rate with machine hours as the allocation base. Next year, 617,333 units are expected to be produced taking 0.75 machine hours each. How much overhead will be assigned to each unit produced given the following estimated amounts?

Estimated: Department 1 Department 2
Manufacturing overhead costs $ 3,145,500 $ 1,577,000
Direct labor hours 169,000 DLH 269,000 DLH
Machine hours 269,000 MH 194,000 MH

Angle Max Industries produces a product which goes through two operations, Assembly and Finishing, before it is ready to be shipped. Next year's expected costs and activities are shown below.

Assembly Finishing
Direct labor hours 150,000 DLH 145,000 DLH
Machine hours 350,000 MH 78,750 MH
Overhead costs $ 350,000 $ 507,500
Assume that the Assembly Department allocates overhead based on machine hours, and the Finishing Department allocates overhead based on direct labor hours. How much total overhead will be assigned to a product that requires 1 direct labor hour and 3.0 machine hours in the Assembly Department, and 3.6 direct labor hours and 0.5 machine hours in the Finishing Department?

Lake Erie Company uses a plantwide overhead rate with machine hours as the allocation base. Next year, 610,000 units are expected to be produced taking 0.70 machine hours each. How much overhead will be assigned to each unit produced given the following estimated amounts?

Estimated:
Department 1
Manufacturing overhead costs-$3,109,500
Direct labor hours-151,000 DLH
Machine hours-251,000 MH

Department 2
Manufacturing overhead costs-$1,523,000
Direct labor hours-251,000 DLH
Machine hours-176,000MH

Angle Max Industries produces a product which goes through two operations, Assembly and Finishing, before it is ready to be shipped. Next year's expected costs and activities are shown below.

Assembly
Direct labor hours 200,000 DLH
Machine hours 400,000 MH
Overhead costs $400,000
Finishing
Direct labor hours 150,000 DLH
Machine hours 100,000 MH Overhead costs $600,000

Assume that the Assembly Department allocates overhead based on machine hours, and the Finishing Department allocates overhead based on direct labor hours. How much total overhead will be assigned to a product that requires 1 direct labor hour and 3.5 machine hours in the Assembly Department, and 4.2 direct labor hours and 0.5 machine hours in the Finishing Department?

Fundamentals of Financial Management, Concise Edition

10th EditionEugene F. Brigham, Joel Houston

777 solutions

Century 21 Accounting: General Journal

11th EditionClaudia Bienias Gilbertson, Debra Gentene, Mark W Lehman

1,009 solutions

Essentials of Investments

9th EditionAlan J. Marcus, Alex Kane, Zvi Bodie

689 solutions

Accounting: What the Numbers Mean

9th EditionDaniel F Viele, David H Marshall, Wayne W McManus

338 solutions

Fundamentals of Financial Management, Concise Edition

10th EditionEugene F. Brigham, Joel Houston

777 solutions

Essentials of Investments

9th EditionAlan J. Marcus, Alex Kane, Zvi Bodie

689 solutions

Options, Futures, and Other Derivatives

5th EditionJohn C. Hull

181 solutions

Principles of Managerial Finance

13th EditionChad J. Zutter, Lawrence J Gitman

1,766 solutions

Which types of overhead allocation methods result in the use of more than one overhead rate during the same time period quizlet?

Which of the following is a method of assigning overhead costs to a product using a single overhead rate?

What are three common methods of assigning overhead costs to a product?

Which of the following is an advantage of using the plantwide overhead rate method?