Heidelberg Fabrication manufactures two products, G-09 and G-35: Units produced Direct materials cost per unit Machine-hours per unit Production runs per quarter G-09 18,400 $7 4 144 G-35 3,688 $ 19 7 72

College Accounting, Chapters 1-27
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Chapter26: Manufacturing Accounting: The Job Order Cost System
Section: Chapter Questions
Problem 5SEB: PREDETERMINED FACTORY OVERHEAD RATE Marston Enterprises calculates a predetermined factory overhead...
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Required information
Heidelberg Fabrication manufactures two products, G-09 and G-35:
Units produced
Direct materials cost per unit.
Machine-hours per unit
Production runs per quarter
Machine depreciation
Setup labor
Materials handling
Total
Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at
the plant follow:
Required:
G-09
18,400
$7
4
144
a. Overhead rate
b. Machine depreciation
b. Setup labor
b. Materials handling
G-35
3,680
$ 19
7
72
$ 99,360
49,688
39,744
$ 188,784
a. Heidelberg currently applies overhead on the basis of machine-hours. What is the predetermined overhead rate for the quarter?
Note: Round your answer to 2 decimal places.
b. Heidelberg is thinking of adopting an ABC system. They have tentatively chosen the following cost drivers: machine-hours for
machine depreciation, production runs for setup labor, and direct material dollars for materials handling. Compute the cost driver
rates for the proposed system at Heidelberg.
per machine hour
per machine hour
per production run
% direct material cost
Transcribed Image Text:Required information Heidelberg Fabrication manufactures two products, G-09 and G-35: Units produced Direct materials cost per unit. Machine-hours per unit Production runs per quarter Machine depreciation Setup labor Materials handling Total Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the plant follow: Required: G-09 18,400 $7 4 144 a. Overhead rate b. Machine depreciation b. Setup labor b. Materials handling G-35 3,680 $ 19 7 72 $ 99,360 49,688 39,744 $ 188,784 a. Heidelberg currently applies overhead on the basis of machine-hours. What is the predetermined overhead rate for the quarter? Note: Round your answer to 2 decimal places. b. Heidelberg is thinking of adopting an ABC system. They have tentatively chosen the following cost drivers: machine-hours for machine depreciation, production runs for setup labor, and direct material dollars for materials handling. Compute the cost driver rates for the proposed system at Heidelberg. per machine hour per machine hour per production run % direct material cost
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