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1.
Production department rates:
Subassembly Final Assembly
Factory overhead
Direct labor hours
Production department rate
Direct Labor Production Factory
Receivers:
Subassembly Department /dlh =
Final Assembly Department /dlh =
Total factory overhead
Number of units
Factory overhead per unit
Loudspeakers:
Subassembly Department /dlh =
Final Assembly Department /dlh =
Total factory overhead
Number of units
Factory overhead per unit
3.
Activity-based rates:
Factory overhead
Activity base setups insp. dlh dlh
Activity rate /setup /insp. /dlh /dlh
4.
Activity Usage Activity Rate =Activity Cost Activity Usage Activity Rate =Activity Cost
Setup setups /setup =
/setup =
Quality Control insp. /insp. = insp. /insp. =
Subassembly Department dlh /dlh = dlh /dlh =
Final Assembly Department dlh /dlh = dlh /dlh =
Total
Number of units
Activity cost per unit
5.
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An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded.
1.
Production department rates:
Subassembly Final Assembly
Factory overhead $420,000 $294,000
Direct Labor Production Factory
Receivers:
Subassembly Department 875 $300 /dlh = 262,500$
3.
Activity-based rates:
Factory overhead $138,600 $261,800 $198,800 $114,800
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