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Homework answers / question archive / Ratner Manufacturing identified Me following costs geted data in fishy° production deparhents Assembly Foisbilg fltl';:ortrse"ad S
Ratner Manufacturing identified Me following costs geted data in fishy° production deparhents Assembly Foisbilg fltl';:ortrse"ad S. 1,112,500 8.500,000 Machine hours used
Required,
1. What is the company's single p Estimated overhead costs Estimated direct labor hails 2. Mat is company's single pla Estimated overhead costs Estimated machine hours
Ans:
Total manufacturing overhead costs= $1112500+$500000
= $1612500
Total direct labor hours= 11000+19000=30000
Total machine hours= 5000+15000=20000
1. Company’s single plantwide overhead rate based on direct labor hours
= Estimated overhead costs/Estimated direct labor hours
=$1612500/30000
=$53.75 per direct labor hour
2. Company’s single plantwide overhead rate based on machine hours
= Estimated overhead costs/Estimated Machine hours
=$1612500/20000
=$80.625 per machine hour
