Answer:
A. Commercial 540
Residential 360
B. Commercial 585
Residential 390
Explanation:
a) Calculation to Determine the per-unit factory overhead allocated to the commercial and residential motors .
First step is to calculate the Plantwide overhead rate using this formula
Plantwide overhead rate =Estimated overhead /Esimated machine hours
Let plug in the formula
Plantwide overhead rate = 1080000/9000
Plantwide overhead rate = $ 120 per MH
Now let Determine the per-unit factory overhead allocated to the commercial and residential motors
Using this formula
Per -unit factory overhead allocated=Actual MH per unit *Plantwide overhead rate
Let plug in the formula
Per -unit factory overhead allocated to COMMERCIAL=4.5 dmh*120
Per -unit factory overhead allocated to COMMERCIAL=540
Per -unit factory overhead allocated to RESIDENTIAL=3.0 dmh*120
Per -unit factory overhead allocated to RESIDENTIAL=360
Therefore the per-unit factory overhead allocated to the commercial and residential motors under the single plantwide factory overhead rate method will be:
Commercial 540
Residential 360
b. Calculation to Determine the per-unit factory overhead allocated to the commercial and residential motors
First step is to calculate the Departmental overhead rate
ASSEMBLY TESTING
Estimated overhead 280,000 800,000
÷Estimated machine hours each department 4,000 5,000
=Departmental overhead rate 70 160
Now calculation the per-unit factory overhead allocated to the commercial and residential motors
COMMERCIAL RESIDENTIAL
Assembly 1.5 dmh*70=105 1.0 dmh*70=70
Testing 3.0*160= 480 2.0*160= 320
Per -unit factory overhead allocated 585 390
(105+480=585)
(70+320=390)
Therefore the per-unit factory overhead allocated to the commercial and residential motors under the multiple production department factory overhead rate method will be:
Commercial 585
Residential 390
