Reference no: EM132557152
Question - 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 plantwide manufacturing overhead rate using machine hours as the allocation base.
b. Calculate the plantwide 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.