Angler Industries produces a product which goes through two operations, Assembly and Hik costs and activities are shown below. Direct labor hours Machine hours Overhead costs Assembly 190,000 DLH 390,000 MH $ 390,000 Finishing 149,000 DLH 95,550 MH $ 581, 100 Assume that the Assembly Department allocates overhead based on machine hours, and the Finishing Department allocates overhead based on direct labor hours. How much total overhead will be assigned to a product that requires 1 direct labor hour and 3.4 machine hours in the Assembly Department, and 4.0 direct labor hours and 0.6 machine hours in the Finishing Department?

Angler Industries produces a product which goes through two operations, Assembly and Hik costs and activities are shown below. Direct labor hours Machine hours Overhead costs Assembly 190,000 DLH 390,000 MH $ 390,000 Finishing 149,000 DLH 95,550 MH $ 581, 100 Assume that the Assembly Department allocates overhead based on machine hours, and the Finishing Department allocates overhead based on direct labor hours. How much total overhead will be assigned to a product that requires 1 direct labor hour and 3.4 machine hours in the Assembly Department, and 4.0 direct labor hours and 0.6 machine hours in the Finishing Department?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 28E: Minor Co. has a job order cost system and applies overhead based on departmental rates. Service...

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