How do compute departmental overhead rates

Assignment Help Managerial Accounting

Reference no: EM132692646

Garvey's plan completed jobs 450 and 455 on May 15th. Both jobs incurred a total of 5dl hours throughout the entire production process. Job 450 incurred three MH in the machining department and four DL hours in the finishing Department the other deal hour occurred in the machining Department. Job 455 incurred 5 MH in the machine department and 3 DL hours and the finishing Department the other two DL hours occurred in the machining Department.

Question 1) Compute the plant wide overhead rate assuming that garbies expects to encourage 26,000 total DL hours during the year.

Question 2) Compute departmental overhead rates assuming that garvey's expects to incur 15,000 MH in the machining department and 17,400 DL hours in the finishing Department during the year.

Question 3) if garvey's continues to use the plant wide overhead rate how much manufacturing overhead would be allocated to job 450 and job 455?

Question 4) if garvey's uses Departmental to overhead rates how much manufacturing overhead would be allocated to job 450 and job 455?

Question 5) Based on your answers to requirements three and four does the plan wide overhead rate over cost or under cost either job explain if garbage sells its furniture at 125% of cost will its choice of allocation systems affect product pricing? Explain.

Reference no: EM132692646

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