Tableau DA 17-1: Quick Study, Computing plantwide overhead rates LO P1 Chrom Co....
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Tableau DA 17-1: Quick Study, Computing plantwide overhead rates LO P1
Chrom Co. manufactures two models, the XL and RD. It also has two departments, assembly and finishing. The company wants to assign overhead costs to its two different models to better understand the profitability of each model. The Tableau Dashboard provides data for our analysis. Estimated Overhead Costs by Department Estimated Direct Labor Hours & Machine Hours by Department 150,000 hrs 125,000 hrs 100,000 hrs Finishing Assembly 75,000 hrs Total: Assembly $8,000,000 50,000 hrs Assembly 25,000 hrs Finishing Finishing Direct Labor Hours Machine Hours Cost Driver & Expected Usage by Activity Estimated Overhead Costs by Activity Supervision Maintenance Supervision Total: $8,000,000 Maintenance Note: Total overhead costs by department and total overhead costs by activity are equal. The costs are presented in two different ways here. a b le a u K 1. Using data from the upper half of the dashboard, compute the company's single plantwide overhead rate based on direct labor hours. 2. Using data from the upper half of the dashboard, compute the company's single plantwide overhead rate based on machine hours. 1. Plantwide overhead rate based on direct labor hours 2. Plantwide overhead rate based on machine hours
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