- Suppose That All Costs Have Been Compiled For A Certain Manufacturing Firm For Last Year The Summary Is Shown In The Ta 1 (61.14 KiB) Viewed 90 times
Suppose that all costs have been compiled for a certain manufacturing firm for last year. The summary is shown in the table below. The
company operates two different manufacturing plants plus a corporate headquarters. Determine (a) the factory overhead rate for each plant, and (b) the corporate overhead rate. These rates will be used by the firm to predict the following year's expenses. Expense Category Direct labor Materials Factory expense Corporate expense Totals Plant 1 ($) 800,000 2,500,000 2,000,000 Plant 2 ($) Headquarters ($) 400,000 1,500,000 1,100,000 7,200,000 3,000,000 7,200,000 Totals ($) 1,200,000 4,000,000 3,100,000 7,200,000 15,500,000 5,300,000