Auburn, Inc.‘s overhead costs of $700000 consist of machining $400000; inspecting $200000; and packaging $100000. Machining works 4000 hours a year, 500 inspections occur each year, and 1000 packing order occur each year. Information on the company’s two products are as follows: Alpha OmegaMachining hours 1000 3000 Inspections 100 400 Packing orders 350 650 Direct labor hours 1700 1800 How much overhead is allocated to Alpha using a single overhead rate (based on direct labor hours) and assuming ABC, respectively?(a) $340000 and $360000 (b) $340000 and $175000 (c) $360000 and $175000 (d) $360000 and $525000

Single overhead rate = Total overhead/Total direct labor hours

Answered: overhead is allocated to Alpha

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter16: Job Order Costing

Section: Chapter Questions

Problem 4CMA: Patterson Corporation expects to incur 70,000 of factory overhead and 60,000 of general and...

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Auburn, Inc.‘s overhead costs of $700000 consist of machining $400000; inspecting $200000; and packaging $100000. Machining works 4000 hours a year, 500 inspections occur each year, and 1000 packing order occur each year. Information on the company’s two products are as follows:

	Alpha	Omega
Machining hours	1000	3000
Inspections	100	400
Packing orders	350	650
Direct labor hours	1700	1800

How much overhead is allocated to Alpha using a single overhead rate (based on direct labor hours) and assuming ABC, respectively?

(a) $340000 and $360000

(b) $340000 and $175000

(d) $360000 and $525000

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