Question

Reliable Car​ Parts, a manufacturer of spare​ parts, has two production departmentslong dashAssembling and Packaging. The Assembling Department is​ mechanized, while the Packaging Department is labor oriented. Estimated manufacturing overhead costs for the year were​ $17,400,000 for Assembling and​ $11,700,000 for Packaging. Calculate the department predetermined overhead allocation rates for the Assembling and Packaging​ Departments, respectively, if the total estimated machine hours were​ 35,000 and labor hours were​ 21,000 for the year.​ (Round your answer to the nearest​ cent.)

Answer 1

Answer:

Instructions are listed below

Explanation:

Giving the following information:

The Assembling Department is​ mechanized, while the Packaging Department is labor-oriented.

Estimated manufacturing overhead costs for the year were​ $17,400,000 for Assembling and​ $11,700,000 for Packaging.

The total estimated machine hours were​ 35,000 and labor hours were​ 21,000 for the year.

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Assembling:

Estimated manufacturing overhead rate= 17,400,000/35000= $497.14 per machine hour.

Packaging:

Estimated manufacturing overhead rate= 11,700,000/ 21,000= $557.14 per direct labor hour.