Question

Assume the following information for the G.Long Company (all estimated figures)

Factory Overhead ..... $425,000

Units of production ..... $500,000

Direct material cost ..... $1,000,000

Direct labor cost ..... $1,500,000

Direct labor hours ..... 250,000

Machine hours ..... 110,000

Required: Compute the factory overhead application rate for G.Long Company under the following bases:

a) Unit of production

b) Direct material cost

c) Direct labor cost

d) Direct labor hours

e) Machine hours

I want it to be solved on an excel spreadsheet with all formulas needed and plz do upload it as a link and a screenshot so I can see it clearly. Excel spreadsheet is required for the assignment.

Answer 1

Answer:-

(a) Factory Overhead application rate (Unit of Production):=Factory Overhead Cost / Units of Production Cost

=(425,000/500,000) * 100

=85%

(b) Factory Overhead application rate (Direct Material cost)=Factory Overhead Cost / Direct Material cost

=(425,000/1,000,000) * 100

   =43%

(c) Factory Overhead application rate (Direct Labour cost)=Factory Overhead Cost / Direct Labour cost

=(425,000/1,500,000) * 100

=28%

(d) Factory Overhead application rate (Direct Labour hour)=Factory Overhead Cost / Direct Labour hours

=425,000 / 250,000

=$  1.70