Kilbourne Appliances produces two models of beverage coolers for homes and offices, the KA-15 and the KA-24. Data on operationsand costs for March follow.Units producedMachine-hoursDirect labor-hoursDirect materials costsDirect labor costsManufacturing overhead costsTotal costsRequired:KA-15a. Predetermined overhead rateb. Predetermined overhead rate672360750$ 74,40015,000KA-244485401,750$ 126,00035,000Totala. Compute the predetermined overhead rate assuming that Kilbourne Appliances uses direct labor-hours to allocate overhead costs.Note: Round your answer to 2 decimal places.b. Compute the predetermined overhead rate assuming that Kilbourne Appliances uses machine-hours to allocate overhead costs.per direct labor-hourper machine-hour1,1209002,500$ 200,40050,000198,000$ 448,400

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Kilbourne Appliances pro and costs for March follo-

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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Question

Kilbourne Appliances produces two models of beverage coolers for homes and offices, the KA-15 and the KA-24. Data on operations
and costs for March follow.
Units produced
Machine-hours
Direct labor-hours
Direct materials costs
Direct labor costs
Manufacturing overhead costs
Total costs
Required:
KA-15
a. Predetermined overhead rate
b. Predetermined overhead rate
672
360
750
$ 74,400
15,000
KA-24
448
540
1,750
$ 126,000
35,000
Total
a. Compute the predetermined overhead rate assuming that Kilbourne Appliances uses direct labor-hours to allocate overhead costs.
Note: Round your answer to 2 decimal places.
b. Compute the predetermined overhead rate assuming that Kilbourne Appliances uses machine-hours to allocate overhead costs.
per direct labor-hour
per machine-hour
1,120
900
2,500
$ 200,400
50,000
198,000
$ 448,400

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