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Question - Becton baking co, makes cakes for distribution to the restaurant. The company has two departments, mixing and baking. Manufacturing overhead is applied to each department as follows: mixing department as follows: mixing department based on $65 per direct labour hour (dlh) and baking department based on 180 per machine hour(mh). Production data as follows:
Actual MOH
DLH
MH
Mixing
1250000
22125
9652
Baking
750000
956
3756
1. Determine the amount of over- or- under applied overhead for each department?
2. Calculate the total cost for the cakes (not per unit but for the entire batch in production)?
3. Calculate the retail price in total for all the cakes, if the mark up rate is 25% of the cost?
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