Ch 04 Ex 4-7 Check my werk 1 Exercise 4-7 Using the plantwide overhead rate to a
ID: 2515689 • Letter: C
Question
Ch 04 Ex 4-7 Check my werk 1 Exercise 4-7 Using the plantwide overhead rate to assess prices LO P Way Cool produces two d department. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, and with these two indicated with a minus sign. Round your intermediate calculations and round "Cost per unit and OH rate" answers to 2 decimal Overhead Cost Driver 300,800 Machine hours 7,600 Nuber of setups 180,100 iselding hours 224,000Number of Inspections 6,000 Inspecting 60.680Rework orders 5 464,70e $ 136,50 31,250 umber of units 840Nmber of units 5,400 5,400 Type here to seExplanation / Answer
1.Total overhead costs= $981300+$464700+$228390=$1674390
Total machine hours=2300+5300=7600 hours
Overhead rate= Total overhead cost/total machine hours= $1674390/7600=$220.31
Per unit cost=$506723/1800 units=$281.51
Per unit cost=$1167667/3600=$324.35
2.
Total cost per unit
Total Model 145=$471.51
Model212= $444.35
3.
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Model Activity Driver Plantwide overhead rate Total overhead cost Units Overhead Cost per unit 145 Machine hours $220.31 $506723 1800 $281.51 212 Machine hours $220.31 $1167667 3600 $324.35