Answer:
The manufacturing overhead used to the mixing department is = $ 700,000
Explanation:
Solution
For the information in the question stated the manufacturing overhead is used to each department based on the machine hours under a rate per machine hour.
So, the manufacturing overhead put into a department shall be equal to as
= The Machine hours used by the department * Manufacturing overhead rate per machine hour
Now,
The Calculation of manufacturing overhead applied to the baking department is given as:
From the information in the question stated we have
,
The hours used by the machine for the baking department = 25,000 machine hours ,
The Manufacturing rate overhead per machine hour = $ 20
Hence,
The manufacturing overhead applied to the baking department is defined as
= The Machine hours used by the baking department * Manufacturing overhead rate per machine hour
Which is,
= 25,000 * $ 20 = $ 500,000
Thus,
The manufacturing overhead applied to the baking department is defined as = $ 500,000
The Calculation of manufacturing overhead applied to the Mixing department is based on the information stated in the question thus we have:
The Machine hours used by the Mixing department = ( 60,000 - 25,000 ) = 35,000 machine hours ,
The Manufacturing rate of overhead per machine hour = $ 20
Now,
The manufacturing overhead applied to the Mixing department is
= The Machine hours used by the Mixing department * Manufacturing rate overhead per machine hour
= 35,000 * $ 20
= $ 700,000
Therefore,The manufacturing overhead used to the mixing department is = $ 700,000
