Superior Products Manufacturing Identified the Following Data in Its Two

question 90

Essay

Superior Products Manufacturing identified the following data in its two production departments.
$$\begin{array} { | l | c | c | } \hline & \text { Assembly } & \text { Finishing } \\\hline \text { Manufacturing overhead costs } & \$ 225,000 & \$ 420,000 \\\hline \text { Direct labor hours worked } & 6,600 \mathrm { DLH }& 9,000 \mathrm { DLH } \\\hline \text { Machine hours used } & 2,400 \mathrm { MH } & 5,200 \mathrm { MH } \\\hline\end{array}$$
Make the following independent calculations (Round to two decimals).
a.Compute a plantwide overhead rate using machine hours as the allocation base.
b.Compute a plantwide overhead rate using direct labor hours as the allocation base.

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Definitions:

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