Business, 23.03.2020 20:36 elizediax6421

Condelezza Co. manufactures two products, A and B, in two production departments, Assembly and Finishing. Condelezza Co. expects to produce 10,000 units of Product A and 20,000 units of Product B in the coming year. Budgeted factory overhead costs for the coming year are:

Assembly 310,000
Finishing 240,000

Total $550,000

The machine hours expected to be used in the coming year are as follows:

Assembly Dept. Finishing Dept.
Product A 15,100 9,000
Product B 4,900 11,000

Total 20,000 20,000
Round your answers to two decimal places, if necessary.

a. Compute the plantwide factory overhead rate.

Compute the production department factory overhead rates.

b. Compute the factory overhead per unit for each product using:

The single plantwide rate:

Production department factory overhead rates:

c. Which method is better (plantwide or department)?

Why?

Answers: 3

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