a. Calculate Dixon's current plantwide overhead rate based on direct labor hours. b. Verify Dixon's...
90.2K
Verified Solution
Link Copied!
Question
Accounting
a. Calculate Dixon's current plantwide overhead rate based on direct labor hours. b. Verify Dixon's calculation of overhead cost per unit of S12.82 for shafts and $6.10 for gears. | Shafts Gears Setup costs Machine costs Purchasing and receiving costs Engineering costs Materials handling costs $30,000 175,000 210,000 200,000 90,000 Production Units Selling price Overhead per unit based on DLH) DM & DL cost per unit Number of production runs Number of purchasing & receiving orders processed Number of machine hours Number of direct labor hours Number of engineering hours Number of material moves 10,500 $31.86 $ 24.00 $ 6.10 8.53$6.26 20 50,000 12.8:2 10 Total MO $705,000 40 12,750 25,000 5,000 50 100 6,000 2,500 5,000 40 Shafts Gears Part (a) Current plantwide overhead rate = Part (b) Overhead per unit Current plantwide overhead rate = cost per unit
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
