Answer:
Plantwide Overhead Rate $ 213.61 per hour
1) Overhead Cost Model 145=$ 487062.56
1) Overhead Cost Model 211= $ 1153494
<u>Total Cost per unit </u> Model 145 <u> 696.29 </u> Model 212
<u> $406.56</u>
Explanation:
Plantwide Overhead Rate = Total Estimated Overhead/ No of Machine Hours
Process Activity Overhead Cost Driver Quantity
Components Changeover $ 459,500 Number of batches 810
$ 459,500/810= $567.28 per batch
Machining 301,600 Machine hours 7,680
301,600/ 7,680
= $ 39.27
Setups 227,500 Number of setups 80
<u>227,500 /80=2843.75 per set up </u>
<u>$ 459,500 +301,600 +227,500 =</u><u>$ 988,600 </u>
Finishing Welding $ 180,500 Welding hours 4,900
$ 180,500/ 4,900= $ 36.84 per welding hour
Inspecting 222,000 Number of inspections 815
222,000/815
= $ 272.39 per number of inspections
Rework 60,700 Rework orders 230
<u> 60,700 /230
= 263.91 per rework order </u>
<u>$ 180,500+ 222,000+ 60,700 =</u><u>$ 463,200 </u>
Support Purchasing $ 135,500 Purchase orders 525
$ 135,500 / 525
= $ 258.10 per purchase order
Providing space 31,550 Number of units 4,800
31,550/4800= $ 6.57 per number of unit
Providing utilities 60,110 Number of units 4,800
<u>60,110 / 4800= $ 12.53 </u>
<u>$ 135,500+ 31,550+60,110 </u><u>=$ 227,160 </u>
Additional production information concerning its two product lines follows.
Model 145 Model 212
Units produced 1,600 3,200
Welding hours 2,000 2,900
Batches 405 405
Number of inspections 485 330
Machine hours 2,280 5,400
Setups 40 40
Rework orders 130 100
Purchase orders 350 175
1)Plantwide Overhead Rate = Total Estimated Overhead/ No of Machine Hours
Adding the Estimated Sub Totals we get
Total Estimated Overhead=$ 988,600 + $ 463,200 + $ 227,160
Total Estimated Overhead= $ 1678960
No of Machine Hours= 7860 (given)
Plantwide Overhead Rate =$ 1678960/7860= 213.608= $ 213.61 per hour
Overhead Cost Model 145=$ 213.61 per hour* 2,280 hours
1) Overhead Cost Model 145=$ 487062.56
1) Overhead Cost Model 211=$ 213.61 per hour* 5400 hours= $ 1153494
2) Model 145 Model 212.
Direct Materials $ 130
Direct Labor $200
Overhead Costs $567.28* 405 $567.28*405
= 229784.4 = 229784.4
$ 39.27*2280 $ 39.27*5400
= 89535.6 =212058
2843.75*40 2843.75* 40
=113750 =113750
Subtotal 433070 555592.4
$ 36.84*2000 $ 36.84 *2900
=73680 i = 106836
$ 272.39* 485 $ 272.39* 330
=132109.5 ii = 89888.7
263.91*130 263.91 *100
=34308.3 iii =26391
Subtotal i+ii+iii= 240097.8 223115.7
$ 258.10*350 $ 258.10*175
=90335 i = 45167.5 a
$ 6.57 *1600 $ 6.57 *3200
= 10512 ii =21024 b
$ 12.53 *1600 $ 12.53 *3200
=20048 iii 40096 c
Subtotal i+ii+iii= 120895 a+b+c = 106287.5
Total Overhead 794062.8 884995.6
No of Units 1600 3200
Total Overhead Cost Per Unit 496.29 276.56
Direct Labor $200
Direct Materials <u> $130</u>
<u>Total Cost per unit 696.29 $406.56</u>
