Homework SourseTristar Manufacturing produces two types of batteryoperated
Tristar Manufacturing produces two types of battery-operated toy soldiers: infantry and special forces. The soldiers are produced by using one continuous process. Four activities have been identified: machining, setups, receiving, and packing. Resource drivers have been used to assign costs to each activity. The overhead activities, their costs, and the other related data are as follows:
1. Calculate the total overhead assigned to each product by using only machine hours to calculate a plantwide rate. (Round overhead rate answer to two decimal places and other answers to the nearest dollar.)
The overhead rate is per machine hour.
The total overhead assigned to the infantry product is .
The total overhead assigned to the Special Forces product is .
2. Calculate consumption ratios for each activity. (Round your answers to two decimal places.)
Consumption Ratios
3. Calculate a rate for each activity by using the associated driver.
4. Assign the overhead costs to each product by using the activity rates computed in Requirement 3.
Tristar Manufacturing
Overhead Assignment
1
Infantry
Special Forces
2
Machining
3
Setups
4
Receiving
5
Packing
6
Total
| Product | Machine Hours | Setups | Receiving Orders | Packing Orders |
| Infantry | 19,000 | 330 | 810 | 1,680 |
| Special Forces | 19,000 | 110 | 90 | 840 |
| Costs | $68,400 | $26,664 | $16,020 | $30,744 |
Solution
1. Plant wide rate:
2.
3.
4.
Assignment
| Estimated total overhead | 1,41,828 | ||
| Estimated machine hours | 38,000 | ||
| OH rate per hour | 3.73 | ||
| Product | Hours used | Rate | OH applied |
| Infantry | 19000 | 3.73 | 70,914 |
| Special forces | 19000 | 3.73 | 70,914 |
| Total | 38000 | 3.73 | 1,41,828 |
