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  • Solution:: Overhead Rate Total Overheads / Total Labor Hours

    Uploaded by

    Yousaf Bhutta
    20 views2 pages
    The document shows overhead costs for various factory departments totaling $684,000. It calculates the total labor hours as 12,000 hours and determines the overhead rate as $57 per hour. It then applies this rate to products Y and Z, allocating 66.67% of overheads or $456,000 to product Y based on its 8,000 labor hours and the remaining 33.33% or $228,000 to product Z based on its 4,000 labor hours.

    Original Description:

    Accunting

    Original Title

    Acc Solved

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    The document shows overhead costs for various factory departments totaling $684,000. It calculates the total labor hours as 12,000 hours and determines the overhead rate as $57 per hour. It then applies this rate to products Y and Z, allocating 66.67% of overheads or $456,000 to product Y based on its 8,000 labor hours and the remaining 33.33% or $228,000 to product Z based on its 4,000 labor hours.

    Copyright:

    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xls, pdf, or txt
    20 views2 pages

    Solution:: Overhead Rate Total Overheads / Total Labor Hours

    Uploaded by

    Yousaf Bhutta
    The document shows overhead costs for various factory departments totaling $684,000. It calculates the total labor hours as 12,000 hours and determines the overhead rate as $57 per hour. It then applies this rate to products Y and Z, allocating 66.67% of overheads or $456,000 to product Y based on its 8,000 labor hours and the remaining 33.33% or $228,000 to product Z based on its 4,000 labor hours.

    Copyright:

    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xls, pdf, or txt
    of 2

    SOLUTION:

    Machining
    Machine Stups
    Production Design
    General Factory

    $ 200,000.00
    $ 100,000.00
    $ 84,000.00
    $ 300,000.00

    Total Overheads

    $ 684,000.00

    Total Labor Hours = 8,000 + 4,000


    Total Labor Hours

    12000.00

    Overhead Rate = Total Overheads / Total Labor Hours


    Overhead Rate = $684,000 / 12,000 hours
    Overhead Rate

    Particulars

    57.00
    Product Y

    Product Z

    Labor Hours
    Overhead Rate

    8000.00
    57.00 $

    4000.00
    57.00

    Overheads Allocated
    % of overheads allocated

    $ 456,000.00 $
    66.67%

    228,000.00
    33.33%

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