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Problem - Calculating Manufacturing Overhead Rates

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Problem - Calculating Manufacturing Overhead Rates

Windsor Company, accumulated the following data for 2017:

Milling Department manufacturing overhead $351,000

Finishing Department manufacturing overhead $144,000

Machine hours used

Milling Department 9,000 hours

Finishing Department 2,000 hours

Labor hours used

Milling Department 1,000 hours

Finishing Department 1,000 hours

Required -

a. Calculate the plant-wide manufacturing overhead rate using machine hours as the allocation base.

b. Calculate the plant-wide manufacturing overhead rate using direct labor hours as the allocation base.

c. Calculate department overhead rates using machine hours in Milling and direct labor hours in Finishing as the allocation bases.

d. Calculate department overhead rates using direct labor hours in Milling and machine hours in Finishing as the allocation bases.

Reference no: EM132491141

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