Aradial tire manufacturer produces products in two departmentslong dashdivisions a and
b. the company uses separate predetermined overhead allocation rates for each department to allocate its overhead. divisions a and b have estimated manufacturing overhead costs of $ 160 comma 000$160,000 and $ 360 comma 000$360,000? , respectively. division a uses machine hours as the allocation? base, and division b uses direct labor hours as the allocation base. the total estimated machine hours were 30 comma 00030,000? , and direct labor hours were 21 comma 00021,000 for the year. calculate the departmental predetermined overhead allocation rates.? (round your answer to the nearest? cent.)
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Ответ:
Let’s say that,
Manufacturing Overhead Cost = MOC
A= Division A
B = Division B
Working Time = T (either machine hours or labor hours)
The given variables are:
MOC (A) = $160,000
MOC (B) = $360,000
T (A) = 30,000 machine hours
T (B) = 21,000 labor hours
We are asked to find for the predetermined Overhead Allocation Rates. This is calculated using the formula:
Overhead Allocation Rates = MOC / T
Overhead Allocation Rate (A) = $160,000 / 30,000 machine hours
Overhead Allocation Rate (A) = $5.33 per machine hour
Overhead Allocation Rate (B) = $360,000 / 21,000 labor hours
Overhead Allocation Rate (B) = $17.14 per labor hour
Ответ:
B. processing a return
Explanation:
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