QUESTION 8 Nano Electronics Company produces two products Re

QUESTION 8 Nano Electronics Company produces two products, Resistors and Transistors in a small manufacturing plant which had total manufacturing overhead of $21,000 in June and used 300 direct labor hours. The factory has two departments, Design, which incurred $10,000 of manufacturing overhead, and Production which incurred $11,000 of manufacturing overhead. Design used 200 hours of direct labor and Production used 80 machine hours During June, 150 direct labor hours were used in making 100 units of Resistors, and 150 direct labor hours were used in making 100 units of Transmitters. If Nano Electronics Company uses a plantwide rate manufacturing overhead assigned to each unit of Resistors and Transistors in June were e A $225 for Resistors and $225 for Transistors O B.$105 for Resistors and $105 for Transistors o c s250 for Resistors and S200 for Transistors D $107.14 for Resistors, and $42 86 for Transistors

Solution

Solution

8 option B is correct

$105 for Resistors and $105 for Transistors

Explanation:

By using plant wide overhead rate based on Direct labour hours :

Total manufacturing overhead assigned to Resistors

=($21,000/300 DLH)×150 DLH

=$10,500

Total manufacturing overhead assigned to each unit of Resistor=$10500/100 units

=$105 per unit

Total manufacturing overhead assigned to Transistors

=($21000/300 DLH)×150 DLH

=$10,500

Total manufacturing overhead assigned to each unit of Transistors=$10,500/100 units

=$105 per unit