Homework Answers
Factory overhead allocated to hoses = Total factory overheads * Machine hours for hoses / Total machine hours
Putting the given values in the above formula, we get,
Factory overhead allocated to hoses = $129600 * 1500 / 3600
Factory overhead allocated to hoses = $54000
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Single Plantwide Factory Overhead Rate Kennedy Appliance Inc.'s Machining Department incurred $156,600 of factory overhead cost in producing hoses and valves. The two products consumed a total of 5,400 direct machine hours. Of that amount, hoses consumed 2,400 direct machine hours. Determine the total amount of factory overhead that should be allocated to hoses using machine hours as the allocation base.
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