Ratner Manufacturing identified Me following costs geted data in fishy° production deparhents Assembly Foisbilg fltl';:ortrse"ad S

Accounting Jan 25, 2021

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

Expert Solution

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

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