Renfro Manufacturing identified the following data in its two production departm

Question

Renfro Manufacturing identified the following data in its two production departments.

Manufacturing overhead costs:

    assembly = $600,000

     finishing = $1,200,000

Direct labor hours worked:

     assembly = 12,000 DLH

     finishing = 20,000 DLH

Machine hours used:

     assembly = 6,000 MH

     finishing = 16,000 MH

1.What is the company's single plantwide overhead rate based on direct labor hours (DLH)? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

2.What is the company's single plantwide overhead rate based on machine hours (MH)? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Explanation / Answer

Hi,

Please find the answer as follows:

Part 1:

Direct Labor Hour Single Plantwide Overhead Rate = (600000 + 1200000)/(12000 + 32000) = 56.25 per direct labor hour

Part 2:

Machine Hour Single Plantwide Overhead Rate = (600000 + 1200000)/(6000 + 16000) = 81.818 or 81.82 per machine hour

Thanks.

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects