Freeze Frame,Inc Freeze Frame's Total Expected Overhead Costs and Related Overhead Data

question 135

Essay

Freeze Frame,Inc.produces cameras that require three processes,A,B,and C,to complete.Digital camera model #789 is the best-selling of all the many types of cameras produced.Information related to the 550,000 units of digital camera model #789 produced annually is shown below:
$$\begin{array} { | l | r | } \hline \text { Direct materials } & \$ 450,000 \\\hline \text { Direct Labor } & \\\hline \text { Department A } ( 7,000 \text { DLL } \times \$ 21 \text { per DLH } ) & \$ 147,000 \\\hline \text { Department B } ( 25,000 \text { DLH } \times \$ 19 \text { per DLH) } & \$ 475,000 \\\hline \text { Department C } ( 10,000 \text { DLHH } \times \$ 26 \text { per DLH) } & \$ 260,000 \\\hline \text { Machine Hours } & \\\hline \text { Department } A & 42,000 \mathrm { MH } \\\hline \text { Department B } & 23,000 \mathrm { MH } \\\hline \text { Department C } & 38,000 \mathrm { MH } \\\hline\end{array}$$
Freeze Frame's total expected overhead costs and related overhead data are shown in the following table:
$$\begin{array} { | l | r | r | r | } \hline & \text { Department A } & \text { Department B } & \text { Department C } \\\hline \text { Direct labor hours } & 90,000 \mathrm { DLH } & 75,000 \mathrm { DLH } & 42,000 \mathrm { DLH } \\\hline \text { Machine hours } & 67,500 \mathrm { MH } & 135,000 \mathrm { MH } & 53,200 \mathrm { MH } \\\hline \begin{array} { l } \text { Manuffacturing overhead } \\\text { costs }\end{array} & \$ 540,000 & \$ 675,000 & \$ 399,000 \\\hline\end{array}$$
a.Compute a departmental overhead rate for department A based on machine hours.
b.How much overhead is associated with model 789 from department A?
c.Compute a departmental overhead rate for department B based on direct labor hours.
d.How much overhead is associated with model 789 from department B?
e.Compute a departmental overhead rate for department C based on machine hours.
f.How much overhead is associated with model 789 from department C?
g What is the per unit cost of the 550,000 units of model 789?

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Definitions:

Reasonable Means

Methods or actions that are considered fair, rational, and appropriate under given circumstances.

General Contract Law

A legal framework governing the formation, execution, and enforcement of agreements between parties.

Invitation To Trade

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