Reference no: EM132607784
Opticon Ltd is developing departmental overhead rates based on machine hours for its moulding department and direct labour hours for its assembly department. The moulding department has 20 machines that each run for 2 000 hours per year. The assembly department employs 80 people, who each work 2 000 hours per year. The production-related overhead costs distributed to the moulding and assembly departments are budgeted at $500 000 and $740 000, respectively. Two support departments, repairs and engineering, directly support the two production departments, moulding and assembly. These support departments have budgeted costs of $100 000 and $580 000, respectively. The production departments' overhead rates cannot be determined until the support department costs are allocated. The following schedule reflects use of the output of the repairs and engineering departments by the various departments.
User departments
Support departments Repairs Engineering Moulding Assembly
Repairs (repair hours) 0 2 000 3 000 15 000
Engineering (kilowatt hours) 250 000 0 850 000 150 000
Required:
Question 1. (a) Calculate the overhead rates per machine hour for the moulding department and per direct labour hour for the assembly department. Use the direct method to allocate support department costs.
(b) Estimate the overhead cost of a doodad, which is produced using 3 machine hours in the moulding department and 5 labour hours in the assembly department.
Question 2. (a) Calculate the overhead rates per machine hour for the moulding department and per direct labour hour for the assembly department. Use the step-down method to allocate support department costs. Allocate the repairs department costs first.
(b) Now estimate the overhead cost of the doodad using the overhead rates estimated in part 2(a).
|
How you would test for various devices
: When the World Wide Web was new, and HTML was in its earliest stages, developing a Website was relatively straightforward. Some of the biggest concerns were.
|
|
Design a system of controls over payroll
: Design a system of controls over payroll. In an organization such as this, you will typically have a weekly payroll for employees
|
|
Concept of financial fragility
: What does the concept of "financial fragility" refer to? What is relevance of financial fragility to those who experience it, as well as to society at large?
|
|
Explain what changes are necessary to your current site
: In a short document, explain what changes are necessary to your current site to make it usable as a mobile Website. For your Final Deliverable you will need to.
|
|
Estimate the overhead cost of a doodad
: Estimate the overhead cost of a doodad, which is produced using 3 machine hours in the moulding department and 5 labour hours in the assembly department.
|
|
Determine position of the shell and its resultant velocity
: A shell leaves a mortar with a muzzle velocity of 150 m/s directed upward at 60° with the horizontal. Determine the position of the shell and its resultant
|
|
How the Federal Reserve policymakers interpret changes
: the growth rate of M1 fell to 6.1%, while the growth rate of M2 rose to 10.3%. How should the Federal Reserve policymakers interpret these changes
|
|
Henry david thoreau-resistance to civil government
: Look at " Henry David Thoreau's " Resistance to civil government" He claims that it is not just our right as American
|
|
What is the amount of total liabilities at the end of year
: If total assets decreased $93,000 and owner's equity increased $93,000 during the year, what is the amount of total liabilities at the end of the year
|