Check Your Work Klein Distributes A H Your question was Inc

Check Your Work Klein Distributes A H... Your question was Inc. high-quality tennis racquets and high-quality hand-finishing. Products move through two production departments: Forming and Finishing The company uses departmental overhead rates to allocate overhead costs. Overhead is allocated based on machine-hours in Forming and direct labour cost in Finishing. Information related to estimated volumes and denominator values for the coming year are provided below: Tennis Racquets 6,600 $ 4.90 Golf Clubs 10,400 4.00 Direct materials per unit Direct labour cost per unit: Forming Department $10.00 5.50 $ 5.50 $ 6.00 Machine hours per unit: 0.75 0.25 0.25 0.50 Forming In the Finishing Department. MH OLS places

Solution

1.let us calculate the overhead application for each department.

first,

forming department

basis is machine hours.

overhead rate = budgeted manufacturing overhead / (total machine hours in forming department)

here,

budgeted manufacturing overhead = $76,000.

total machine hours in forming department = [0.75 * 6,600] + [0.25*10,400]

=>4,950 + 2,600.

=>7,550 hours.

overhead rate = $76,000 / 7,550 hours

=>$10.07.per machine hour

Finishing department

overhead rate = budgeted overhead / (total finishing department labour cost)

budggeted overhead = $61,000

finisihing department labour cost = [$5.50*6,600] + [$6.00 * 10,,400]

=>$36,300 + 62,400

=>$98,700.

overhead rate for finishing department = $61,000 / 98,700

=>$0.62.per DL $

2.determination of tota cost per unit:

Forming	$10.07 per machine hour
Finishing	$0.62 per DL $