Bobke Technologies Manufactures Three Types of Computers for a Well

question 53

Essay

Bobke Technologies manufactures three types of computers for a well known national brand.The three types are: laptops,desktops,and tablets.Currently,Bobke uses a single plant-wide overhead rate to allocate its $1,667,250 of annual manufacturing overhead.Of this amount,$562,000 is associated with laptops,$492,000 is associated with desktops,and $612,750 is associated with tablets.Bobke is currently using a total of 22,150 machine hours: 7,500 for laptops,8,200 for desktops,and 6,450 for tablets.Bobke uses machine hours to allocate overhead costs.
Required:
a.Calculate the plant-wide manufacturing overhead rate.
b.Calculate the departmental overhead rate for each of the three departments listed.
c.Which product line(s)have been overcosted by using the plant-wide manufacturing overhead rate? By how much per machine hour? Which product line(s)have been undercosted by using the plant-wide manufacturing overhead rate? By how much per machine hour?

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Definitions:

Parietal Pleura

The outer membrane that lines the inner surface of the chest wall and diaphragm in the thoracic cavity, but does not cover the lungs directly.

Peritonitis

Inflammation of the peritoneum, the thin tissue that lines the inner wall of the abdomen and covers most of the abdominal organs.

"-Itis"

A suffix used in medical terminology to denote inflammation of an organ or tissue.

Inflammation

A biological response to harmful stimuli, including pathogens, damaged cells, or irritants, characterized by redness, warmth, swelling, and pain.