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:

Family Stress Model

A framework outlining how economic disadvantages contribute to parental stress, negatively impacting parenting techniques and hence child development.

Family Poverty

Family poverty refers to families living with income levels below the poverty line, leading to challenges in meeting basic needs such as food, shelter, and healthcare.

Stress

A physical, mental, or emotional factor that causes bodily or mental tension and may be a factor in disease causation.

Bully-Victim

Someone who attacks others and who is attacked as well. (Also called provocative victim because they do things that elicit bullying.)