Compute a predetermined overhead rate for the plant

Assignment Help Managerial Accounting
Reference no: EM132509687

verhead Applied to Jobs, Departmental Overhead Rates

Xania Inc. uses a normal job-order costing system. Currently, a plant-wide overhead rate based on machine hours is used. Xania's plant manager has heard that departmental overhead rates can offer significantly better cost assignments than a plant-wide rate can offer.

Xania has the following data for its two departments for the coming year:

                                                             Department A                        Department B

Overhead costs (expected)              $120,000                            $53,000

Normal activity (machine hours)            15,500                               9,800

Required:

Question 1. Compute a predetermined overhead rate for the plant as a whole based on machine hours. Round your answer to two decimal places.

Question 2. Compute predetermined overhead rates for each department using machine hours. (Note: Round to two decimal places, if necessary.)

Reference no: EM132509687

Questions Cloud

Change leadership theories : What sources of resistance should you anticipate? How would you manage the resistance? What change leadership theories would be most helpful and why?
Find what should be overall effect on the company monthly : What should be overall effect on the companymonthly net operating income of change? Fixed expenses are $362,000 per month. company currently selling 5,700 units
Prepare the adjusting journal entry on December : Sunland Corporation issued $3.36 million of 7-year, 3% bonds dated January 1, 2021, for $2,967,185. Prepare the adjusting journal entry on December
What should Mack pay for each bike : If the manufacturer's list price is $687, what should Mack pay for each bike if he orders 110 bikes at a time, assembles the bikes
Compute a predetermined overhead rate for the plant : Compute a predetermined overhead rate for the plant as a whole based on machine hours. Round your answer to two decimal places.
Idea of the collaborative organization is discussed : Idea of collaborative organization is discussed.How can your organization, organization that you are familiar with benefit from being collaborative organization
Journalize all entries required as a result : Journalize all entries required as a result of the above transactions. Werley Company uses the straight-line method of depreciation
What is the result of the disposal transaction : Question - A copy machine cost $46,000 when new and has accumulated depreciation of $40,000. What is the result of the disposal transaction
Explain how to do a statement of cost of goods manufactured : Explain how to do a statement of cost of goods manufactured. Refer to the list of Labels and Amount Descriptions for the exact wording of text

Reviews

Write a Review

Managerial Accounting Questions & Answers

  How much direct materials needs to be purchased

Given the following information from Rowdy Enterprises' direct materials budget, how much direct materials needs to be purchased?

  Question on managerial accounting-uncollectible accounts

Uncollectible accounts expense is determined by the direct write-off method. Which of the following will be amount of uncollectible accounts expense?

  How many units should swanson purchase for the quarter ended

On the basis of this information, how many units should Swanson purchase for the quarter ended September 30?

  Analysis of records shows that debtors settle

The opening cash balance on 1st Jan was expected to be £30,000. The sales budgeted were as follows

  Prepare a report showing the company activity variances

Prepare a report showing the company's activity variances for June.

  Manufacturers and merchandisers can apply

Manufacturers and merchandisers can apply just in time (JIT) to their inventory management.

  Airpro corp. reports the following for november

AirPro Corp. reports the following for November. Compute the controllable overhead variance for November.

  How the unitarist and pluralist approaches to conflict

Describe how the Unitarist and Pluralist approaches to conflict would explain the positions of (a) management and (b) unions in the Schweppes dispute. Identify which one of the approaches provides the better explanation. Explain how you reached th..

  Determining unit production cost

Oasimi Company, which has only one product, has provided following data concerning its most recent month of operations: Find out the unit product cost for the month under variable costing?

  Alternative methods of joint costs allocation

Pacific Lumber processes lumber products for sale to lumber wholesalers. Its most popular line is oak products. Oak tree growers sell Pacific Lumber whole trees

  Research in management accounting in cultural considerations

Research in management accounting, participation in budgets and cultural considerations. The Super Stationary Company buys and sells stationary products.

  Which cost assignment method would most likely be used

Identify which cost assignment method would most likely be used to assign the costs of each activity to the tanning area: direct tracing, driver tracing, or allocation.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd