Answer Happy

Ayr Company manufactures plastic novelties used for advertising
purposes. The manufacturing process involves three
steps. In the Molding Department hot plastic is injected
into a mold, cooled, and then ejected. This creates the basic
product. The products are then moved to
the Trimming Department where excess plastic (flash) is
trimmed off the product and inspected for any faults.
Any products found to
be defective are recycled. The
products are then moved to the Painting
Department where they are painted with
the customer’s message and logo.
The following information was reported for the most recent
period:
REQUIRED
A) Compute the plant‐wide manufacturing overheard rate assuming
that Ayr Company uses direct labour hours capacity as the
plant-wide cost driver and planned manufacturing overhead
b) Compute the departmental manufacturing overhead rates
assuming that Ayr Company uses planned manufacturing overhead and
the capacity of the cost driver for each department. Ayr
Company plans to use machine hours as the cost driver in the
Molding Department and direct labour hours in the Trimming and
Painting Department
C) AYr Company recently completed a job for Maggie Company for
which the following data was accumulated. Compute the cost of this
job assuming Ayr Company uses the plant-wide rate you computed in
a) above. Then compute the cost of this job assuming Ayr
Company uses the departmental rates you computed in b)
above.