Solved

Freeze Frame, Inc A Compute a Departmental Overhead Rate for Department a Based

question 223

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:

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

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?

Definitions:

Punctuated Correctly

Text that has been marked with correct punctuation marks to clarify meaning and indicate the intended structure.

Coordinating Conjunction

A word that connects clauses, sentences, or words of equal syntactic importance, such as "and," "but," or "or."

Subordinating Conjunction

A word or phrase that introduces a dependent clause, connecting it to an independent clause, and indicating a relationship between the two, such as time, reason, or condition.

Punctuated Correctly

Marked with all necessary punctuation marks in accordance with the rules of grammar.