Pearson Session Ended xD pi pearsonedc thtml Deluxe and Bas

×@ Pearson Session Ended x-.D pi pearsonedc thtml Deluxe and Basic ,000 part 1,500 batches 625,000 Handling materials Inspecting product Paying suppliers Insuring the factory Designing packaging ,000 square feet 2 models Required: 1. Compute a single plantwide overhead rate, hours assuming that the company assigns overhead based on 125.000 budgeted direct labor uired 6000 direct labor hours Assign company assigns 2017, the Deluxe model required 2.500 direct labor hours and the basic model rec overhead costs to each model using the single plantwide overhead rate Complete this question by entering your answers in the tabs below. Required 1 Required 3 e a single plantwide overhead rate, assuming that the company assigns overhead based on 125,000 budgeted direct ere to search

Solution

Single Plantwide Overhead rate Activities Expected costs Handling materials $625,000 Inspecting products $900,000 Processing purchase orders $105,000 Paying suppliers $175,000 Insuring the factory $300,000 Desisgning packaging $75,000 A TOTAL $2,180,000 B Budgeted direct labor hour                 125,000 C=A/B Single plantwide overhead rate $                 17.44 Assignment of overhead costs : Delux model: D Direct labor hours 2500 E Labor rate $                 17.44 F=D*E Overhead cost $               43,600 Base Model: G Direct labor hours 6000 H Labor rate $17.44 I=G*H Overhead cost $            104,640