Question

Rafner Manufacturing identified the following budgeted data in its two production departments.

	Assembly			Finishing
Manufacturing overhead costs	$	1,120,800		$	510,000
Direct labor hours		11,100	DLH		19,100	DLH
Machine hours		5,100	MH		15,100	MH

1. What is the company's single overhead rate based on direct labor hours?
Estimated overhead costs			per direct labor hour
Estimated direct labor hours
2. What is the company's single plantwide overhead rate base on machine hours?
Estimated overhead costs			per machine hour
Estimated machine hours

Answer 1

--Requirement asked

1. What is the company's single overhead rate based on direct labor hours?
Estimated overhead costs [1120800+510000]	$1,630,800	$54.00	per direct labor hour
Estimated direct labor hours [11100+19100]	30,200
2. What is the company's single plantwide overhead rate base on machine hours?
Estimated overhead costs [1120800+510000]	$1,630,800	$80.73	per machine hour
Estimated machine hours [5100 + 15100]	20,200