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65) The Polish Factory manufactures natural resources in Ireland

Question : 65) The Polish Factory manufactures natural resources in Ireland : 2147182

ESSAY. Write your answer in the space provided or on a separate sheet of paper.

65) The Polish Factory manufactures natural resources in Ireland. At the beginning of 20XX, the accountant provided the following estimates associated with Department A and Department B for the coming year:

Polish Factory

Next Year Estimates

 

Department A

Department B

Direct labor-hours

40,000

55,000

Machine-hours

80,000

18,000

Direct labor cost

$600,000

$800,000

Manufacturing overhead costs

$400,000

$225,000

 

According to the reports provided by the manager at the Polish Factory, the following data was presented to represent a job that was completed during the year:

 

 

Department A

Department B

Direct labor hours

150

80

Machine-hours

50

8

Direct material cost

$275

$180

Direct labor cost

$75

$350

 

Assume that the Polish Factory uses departmental cost driver rates to allocate manufacturing overhead to products. The manufacturing overhead costs are allocated on the basis of machine-hours in Department A on the basis of direct labor-hours in Department B. First, compute the annual manufacturing cost-allocation rate for Department A. What are the total manufacturing costs associated with the job and what is the amount the manager at the Polish Factory should allocate to the job?

Solution
5 (1 Ratings )

Solved
Accounting 3 Months Ago 41 Views
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