- Use The Information Below To Answer The Two Questions That Follow A Company Has Two Manufacturing Departments Dept A A 1 (47.82 KiB) Viewed 39 times
Use the information below to answer the two
questions that follow. A
company has two manufacturing departments-Dept. A and Dept. B. At the beginning of the most recent period, the
company made the following estimates related to production and manufacturing overhead: Dent. A Dept. B Estimated machine hours (MHS) 13.000 10,000 MHs Estimated direct labor-hours (DLHS) 6,400 8,000 DLHS Estimated total manufacturing overhead (MOH) $252,800 $64,000 At the end of the period, results for two jobs the
company started and completed were as follows: Actual direct material cost Actual direct labor cost Actual MHS - Dept. A Actual MHs - Dept. B Actual DLHS Dept. A Actual DLHs Dept. B Lob AX3 $4931 $549 105 42 57 70 Job A25 $514 $582 92 MHS 50 MHS 52 DLHS 68DLHS Q. The
company is deciding whether to use a plant wide predetermined overhead rate (POHR) or departmental predetermined overhead rates. If the
company uses a plant-wide POHR based on direct labor hours (DLHS), the total cost of Job AX2 would be: ANS. $ Q. If the
company uses departmental POHRs with direct labor hours as the allocation base for the Dept. A and machine hours as the allocation base for the Dept. B, the total cost of Job AZ5 would be: ANSS