The Roanoke Plant of the Virginia Company Has Two Production $\begin{array}{lr}\text { Extrusion } & \$ 360,000 \\\text { Assembly } & 750,000\end{array}$

question 98

Essay

The Roanoke plant of the Virginia Company has two production departments: Extrusion and Assembly. The plant produces two products: P and Q. Cost information for the production departments is given below: $\begin{array}{lr}\text { Extrusion } & \$ 360,000 \\\text { Assembly } & 750,000\end{array}$
The following table presents activity information about the departments and products:
$$\begin{array} { | l | c | c | c | } \hline & \text { Extrusion } & \text { Assembly } & \text { Total } \\\hline \text { Direct labor hours: } & & & \\\hline \text { P } & 10,000 & 20,000 & 30,000 \\\hline \text { Q } & 10,000 & 30,000 & 40,000 \\\hline \text { Total } & 20,000 & 50,000 & 70,000 \\\hline \text { Machine hours: } & & & \\\hline \text { Q } & 5,000 & 1,000 & 6,000 \\\hline \text { Total } & 15,000 & 2,000 & 17,000 \\\hline\end{array}$$
Required:
a.Compute the predetermined overhead rate for each department if Extrusion uses machine hours and Assembly uses labor hours.
b.Calculate the per unit overhead rate for each product if 80,000 units of P were produced and 90,000 units of Q were produced.

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Definitions:

Digest

The process of breaking down food into smaller components that can be absorbed by the body.

Humans

The species Homo sapiens, characterized by bipedalism, high manual dexterity, and advanced cognitive abilities leading to the development of complex tools and society.

Cellulose

A complex carbohydrate that forms the primary structural component of plant cell walls.

Abnormally Folded

Refers to proteins that have not achieved their proper three-dimensional structure, often leading to diseases.