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    Ansted's Avatar
    Ansted Posts: 3, Reputation: 1
    New Member
    		  
    #1

    Oct 1, 2011, 05:00 PM
    What is the manufacturing overhead allocated to the Plastic picture frame?
    Company makes 2 types of frames; plastic and wood
    Assigned $107,000 in monthly mfg costs to two pools: 67,000 power costs and $40,000 to set-up costs.

    Plastic Frames
    Direct Materials $53,360
    Direct Labor $33,360
    Machine Hours 107,420
    Production runs 65
    Units Produced and Sold 59,000

    Wood Frame
    Direct Materials $38,360
    Direct labor $92,720
    Machine hours 7,580
    Production runs 35
    Units Produced and Sold 29,000
    Power cost allocated using machine hours
    Setup costs allocated using Production run
    Unknown008's Avatar
    Unknown008 Posts: 8,076, Reputation: 723
    Uber Member
    		  
    #2

    Oct 2, 2011, 12:47 AM
    First identify the costs which will be included in all your overheads. Can you identify them?
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