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rt 1 of 2 Required information SB Angle Max Industries produces a product... The following information...


rt 1 of 2 Required information SB Angle Max Industries produces a product... The following information applies to the questio
Required information Multiple Choice $19.00. $15.60. $3.40 $16.10. $11.70 < Prev here to search 0
rt 1 of 2 Required information SB Angle Max Industries produces a product... The following information applies to the questions displayed below) 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 190,000 DLH 149,000 DLH Machine hours 390,000 MH 95,550 MH Overhead costs $390,000 $581,100 nts eBook TB MC Qu. 17-117 Assume that the Assembly Department allocates... 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 3.4 machine hours in the Assembly Department, and 40 direct labor hours and 0.6 machine hours in the Finishing Department? Multiple Choice
Required information Multiple Choice $19.00. $15.60. $3.40 $16.10. $11.70 < Prev here to search 0
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Answer:
Overhead rate - Assembly
        = Overhead Costs / Machine Hours
        =    $ 390,000 / 390,000 MH
$ 1 per MH
Overhead rate - Finishing
        = Overhead Costs / Direct Labor Hours
        =    $ 581,100 / 149,000 DLH
$ 3.9 per DLH
Assembly Department
( 3.4 MH x $ 1 )
$ 3.4
Finishing Department
   ( 4 DLH x $ 3.9 )
$ 15.6
Total Overhead assigned $ 19
Option (a) is Correct
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