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Condelezza Co. manufactures two products, A and B, in two production departments, Assembly and Finishing. Condelezza Co. expects to produce 10,000 units of Product A and 20,000 units of Product B in the coming year. Budgeted factory overhead costs for the coming year are:
Assembly 310000
Finishing 240000
Total 550000
The machine hours expected to be used in the coming year are as follows:
Assembly finishing
Product a 15100 9000
Product b 4900 11000
Total 20000 20000
Round your answers to two decimal places, if necessary.
a. Compute the plantwide factory overhead rate.?$ per mh
Compute the production department factory overhead rates.
Assembly Dept.
$ per mh
Finishing Dept.
b. Compute the factory overhead per unit for each product using:
The single plantwide rate:
Product A
$ per unit
Product B
Production department factory overhead rates:
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