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1 year ago

A company incurs $2,700,000 of overhead each year in three departments: Ordering and Receiving, Mixing,?

Business

1 answer:

Digiron [165]1 year ago

6 0

Answer:

Total allocated overhead= $1,840,000

Explanation:

Giving the following information:

Department Expected use of Driver Cost

Ordering and Receiving 2,000 $800,000

Mixing 50,000 1,000,000

Testing 1,500 900,000

Production information for Slime is as follows:

Expected use of Driver

Ordering and Receiving 1,600

Mixing 30,000

Testing 1,000

First, we need to calculate the predetermined overhead rate for each activity:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Ordering and Receiving= 800,000/2,000= $400 per order

Mixing= 1,000,000/50,000= $20 per mixing hour

Testing= 900,000/1,500 = $600 per test

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Ordering and Receiving= 400*1,600= 640,000

Mixing=20*30,000= 600,000

Testing= 600*1,000= 600,000

Total allocated overhead= $1,840,000

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1 year ago

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Explanation:

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1 year ago

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Answer:

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Explanation:

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1 year ago

Armstrong Corporation manufactures bicycle parts. The company currently has a $19,800 inventory of parts that have become obsole

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Answer:

If sold without Modification, Armstrong Corporation will incur a loss of $12,500.

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Explanation:

Workings

Without Modification:

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If you have any queries, feel free to ask. Thanks!

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1 year ago