Chalfant\'s Offshore Company makes 2 different types of boats; sail boats and fi
ID: 2460985 • Letter: C
Question
Chalfant's Offshore Company makes 2 different types of boats; sail boats and fishing boats. The company consists of two different departments, design & engineering, and production. The company has decided to allocate overhead costs in each of the two cost pools. Data on estimated overhead follows:
Sail Boat
Fishing Boat
Cost Pool:
Driver
Overhead Cost
Estimate
Estimate
Design
# of designs
$180,000
22 designs
23 designs
Production
Labor hours
$994,000
4,500 hours
2,500 hours
What is the pre-determined overhead rate for the Design and Production Cost Pool?
Note: the first number in each answer is the Design Cost Pool PDOR Rate, the second is the PDOR Rate for the Production Cost Pool.
$8,182; $220.89
$88,000; $639,000
$4,000; $142.00
$4,000; $220.89
Sail Boat
Fishing Boat
Cost Pool:
Driver
Overhead Cost
Estimate
Estimate
Design
# of designs
$180,000
22 designs
23 designs
Production
Labor hours
$994,000
4,500 hours
2,500 hours
Explanation / Answer
Overhead cost Particulars Cost pool Cost per pool a b c=a/b Design 180000 Total No of designs 45 4000 Production 994000 Total no. Of labor hours 7000 142 The answer is c