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    wicked24's Avatar
    wicked24 Posts: 1, Reputation: 1
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    #1

    Mar 3, 2010, 06:20 PM
    overhead rate using machine hours
    Recalcuate the projected manufactoring costs for job no 110 using three separate rates: one rate or plantwide overhead. Two separate department overhead rates all based on machine hours.

    Plantwide overhead=800,000. Expected Machine hours- Dept. A: 10,000 Dept. B: 50,000. Actual Activity Dept. A: 10500, Dept. B: 52000. Machine-hours projected Dept. A 100, Dept.B 1200
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Mar 5, 2010, 01:31 AM

    Overhead rate is the estimated overhead costs divided by the estimated activity base, which in this case is machine hours.

    Do it once for the totals of the departments. Do it again for each department separately. There really isn't that much to do.
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