Blair Designs plans to allocate factory overhead based upon a departmental rate for the Sewing and Packaging Departments. The company expects to incur total overhead costs of $46,000, of which management expects 75% to be incurred by the Sewing Department and 25% to be incurred by the Packaging Department. Blair makes two products: Solid and Print. Use the following information for problems 6 and 7. Solid Print Sewing (direct labor hours) 2,825 5,800 Packaging (machine hours) 900 1,100 6. Calculate the departmental overhead rates. 7. Calculate the factory overhead to be allocated to each product line.
Blair Designs plans to allocate factory overhead based upon a departmental rate for the Sewing and Packaging Departments. The company expects to incur total overhead costs of $46,000, of which management expects 75% to be incurred by the Sewing Department and 25% to be incurred by the Packaging Department. Blair makes two products: Solid and Print. Use the following information for problems 6 and 7. Solid Print Sewing (direct labor hours) 2,825 5,800 Packaging (machine hours) 900 1,100 6. Calculate the departmental overhead rates. 7. Calculate the factory overhead to be allocated to each product line.
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead
Section: Chapter Questions
Problem 20P: Jillian Manufacturing Inc. manufactures a single product and uses a standard cost system. The...
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