Slosh, Inc Slosh's Total Expected Overhead Costs and Related Overhead Data Are

question 102

Essay

Slosh, Inc.produces washing machines that require two processes, assembling and finishing, to complete.The company's bestselling machine is the commercial washer.Information related to the 500 commercial washers produced annually is shown below.
$$\begin{array} { | l | r | } \hline \text { Direct materials } & \$ 161,000 \\\hline \text { Direct labor } & \\\hline \text { Assembling Department } ( 1,000 \mathrm { DLH } \times \$ 25 \mathrm { per } & \$ 25,000 \\\text { DLH) } & \\\hline \text { Finishing Departrment (250 DL.H } \mathbf { \$ 2 2 \mathrm { per } } \\\text { DLH) } & \$ 5,500 \\\hline \text { Machinehours } & \\\hline \text { Assembling Department } & 1,500 \mathrm { MH } \\\hline \text { Finishing Department } & 400 \mathrm { MH } \\\hline\end{array}$$ Slosh's total expected overhead costs and related overhead data are shown below.The company uses departmental overhead rates based on direct labor hours in the Assembling Department and machine hours in the Finishing Department.
$$\begin{array} { | l | r | r | } \hline & \begin{array} { r } \text { Assembling } \\\text { Department }\end{array} & \begin{array} { r } \text { Finishing } \\\text { Departrnent }\end{array} \\\hline \text { Direct labor hours } & 50,000 & 275,000 \mathrm { DLH } \\& \text { DLH } & \\\hline \text { Machine hours } & 37,500 \mathrm { MH } & 8,000 \mathrm { MH } \\\hline \text { Manufacturing overhead costs } & & \$ 60,000 \\& \$ 4,000,000 & \\\hline\end{array}$$ Determine the total product cost of this product line and each individual commercial washer.

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Definitions:

Processing Time

The amount of time required to complete a particular process, often referring to computations or transactions in computer systems.

Queue Capacity

It refers to the maximum number of items or entities that can be held in a queue system at any given time.

Exponentially Distributed

Describes the time between events in a Poisson process, where events occur continuously and independently at a constant average rate.

Work Station 2

A specific area or desk equipped with the necessary tools or equipment for a particular job or task, denoted as the second in a sequence or array.