Soal Kuis 1

The Jewnoe plant has two production departments: molding and assembly. The plant produces two
products: A and B. Cost information for the production departments is given below:

Molding $360,000
Assembly 750,000

The following table presents activity information about the departments and products:

Molding Assembly Total

Direct labor hours:
A 10,000 20,000 30,000
B 10,000 30,000 40,000
Total 20,000 50,000 70,000
Machine hours:
A 5,000 1,000 6,000
B 15,000 2,000 17,000
Total 20,000 3,000 23,000

Required:

a. Compute the predetermined overhead rate for each department if Molding uses machine
hours and Assembly uses labor hours.

b. Calculate the per unit overhead rate for each product if 80,000 units of A were produced and
90,000 units of B were produced.

A. Molding 360.000/20.000 = 18 per machine hour

Assembly 750.000/50.000 = 15 per direct labour hour

B. overhead assigmant

A B
(18 x 5.000) + (15 x 20.000) 390.000

(18 x 15.000) + (15 x 30.000) 720.000

Total applied overhead 390.000 720.000

Unit of production 80.000 90.000

Unit overhead cost 4.875 8