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 Total costs overhead costs KA-15 a. Predetermined overhead rate b. Predetermined overhead rate 630 360 750 $ 73,000 15,000 KA-24 420 540 1,750 $ 122,500 35,000 Total Required: 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 1,050 900 2,500 $ 195,500 50,000 191,700 $ 437,200
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 Total costs overhead costs KA-15 a. Predetermined overhead rate b. Predetermined overhead rate 630 360 750 $ 73,000 15,000 KA-24 420 540 1,750 $ 122,500 35,000 Total Required: 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 1,050 900 2,500 $ 195,500 50,000 191,700 $ 437,200
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter9: Standard Costing: A Functional-based Control Approach
Section: Chapter Questions
Problem 30P: Algers Company produces dry fertilizer. At the beginning of the year, Algers had the following...
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