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Homework answers / question archive / Assume the following information for the G
Assume the following information for the G. Long Company (all estimated figures. Factory of $425,000 Units of production, 500,000 Direct material cost. $ 4,000,000 Direct labor cost $ 1,500,000 Direct labor hours 250,000 Machine hours. 110,000 Required: Compute the factory of application rate for the G. Long Company under the a) Unit of production b) Direct material cost c) Direct labor cost labor hours e) Machine hours following boses. Scanned with CamScanner
| No. | Method | Activity | Factory OH | / | Estimated activity | = | Overhead rate |
| 1 | Unit of production | Number of units produced | 425000 | / | 500000 | = | $ .85 per units |
| 2 | Direct material cost | Direct material cost | 425000 | / | 1000000 | = | .425 or 42.5% of direct material cost |
| 3 | Direct labor cost | Direct labor cost | 425000 | / | 1500000 | = | .2833333 or 28.33333% of direct labor cost (rounded to 28.33%) |
| 4 | Direct labor hours | Number of Direct labor hours | 425000 | / | 250000 | = | $ 1.7 per DLH |
| 5 | Machine hours | Number of Machine hours | 425000 | / | 110000 | = | $ 3.86364 per MH (rounded to 3.86 per MH) |
