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donbright100
12.03.2021 •
Business
The total factory overhead for Landen Company is budgeted for the year at $675,000. Landen manufactures two drapery products: sheer curtains and insulated curtains. These products each require 6 direct labor hours (dlh) to manufacture. Each product is budgeted for 7,500 units of production for the year. What would the factory overhead allocated per unit for insulated curtains using the single plantwide factory overhead rate be
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Ответ:
$45.00 allocated per insulated curtain
Explanation:
Calculation for What would the factory overhead allocated per unit for insulated curtains using the single plantwide factory overhead rate be
First step is to calculate the Total budgeted plantwide allocation base for sheer curtains and
insulated curtains
Budgeted plantwide allocation base for sheer curtains =7,500 units × 6 dlh
Budgeted plantwide allocation base for sheer curtains=45,000 dlh
Budgeted plantwide allocation base for insulated curtains =7,500 units × 6 dlh
Budgeted plantwide allocation base for insulated curtains = 45,000 dlh
Total budgeted plantwide allocation base=45,000 dlh+45,000 dlh
Total budgeted plantwide allocation base=90,000 dlh
Now let calculate the Single plantwide factory overhead rate using this formula
Single plantwide factory overhead rate =(Total budgeted factory overhead /Total budgeted plantwide allocation base) *Overhead rate
Let plug in the formula
Single plantwide factory overhead rate=($675,000 / 90,000) × 6 hours
Single plantwide factory overhead rate = $45.00 allocated per insulated curtain
Therefore What would the factory overhead allocated per unit for insulated curtains using the single plantwide factory overhead rate be is $45.00 allocated per insulated curtain
Ответ: