Kilbourne Appliances produces two models of beverage coolers for homes and offices, the KA-15 and the KA-24. Data on operations and costs for March follow. Units produced Machine-hours Direct labor-hours Direct materials costs. Direct labor costs Manufacturing overhead costs Total costs KA-15 624 360 750 a. Predetermined overhead rate b. Predetermined overhead rate $ 72,800 15,000 KA-24 416 540 1,750 $ 122,000 35,000 Required: a. Compute the predetermined overhead rate assuming that Kilbourne Appliances uses direct labor-hours to allocate overhead costs. Note: Round your answer to 2 decimal places. b. Compute the predetermined overhead rate assuming that Kilbourne Appliances uses machine-hours to allocate overhead costs. Total 1,040. 900 2,500 $ 194,800. 50,000 190,800 $.435,600 per direct labor-hour per machine-hour

Kilbourne Appliances produces two models of beverage coolers for homes and offices, the KA-15 and the KA-24. Data on operations and costs for March follow. Units produced Machine-hours Direct labor-hours Direct materials costs. Direct labor costs Manufacturing overhead costs Total costs KA-15 624 360 750 a. Predetermined overhead rate b. Predetermined overhead rate $ 72,800 15,000 KA-24 416 540 1,750 $ 122,000 35,000 Required: a. Compute the predetermined overhead rate assuming that Kilbourne Appliances uses direct labor-hours to allocate overhead costs. Note: Round your answer to 2 decimal places. b. Compute the predetermined overhead rate assuming that Kilbourne Appliances uses machine-hours to allocate overhead costs. Total 1,040. 900 2,500 $ 194,800. 50,000 190,800 $.435,600 per direct labor-hour per machine-hour

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter26: Manufacturing Accounting: The Job Order Cost System

Section: Chapter Questions

Problem 5SEA: PREDETERMINED FACTORY OVERHEAD RATE Millerlile Enterprises calculates a predetermined factory...

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