Author Question: For Bauer Manufacturing, what is the annual manufacturing overhead cost-allocation rate for the ... (Read 169 times)

Lisaclaire · **on:** Jul 5, 2018

For Bauer Manufacturing, what is the annual manufacturing overhead cost-allocation rate for the Machining Department?

Bauer Manufacturing uses departmental cost driver rates to allocate manufacturing overhead costs to products. Manufacturing overhead costs are allocated on the basis of machine-hours in the Machining Department and on the basis of direct labor-hours in the Assembly Department. At the beginning of 20X3, the following estimates were provided for the coming year:

Machining Assembly
Direct labor-hours 30,000 60,000
Machine-hours 80,000 20,000
Direct labor cost 500,000 900,000
Manufacturing overhead costs 420,000 240,000

The accounting records of the company show the following data for Job 316:

Machining Assembly
Direct labor-hours 120 70
Machine-hours 60 5
Direct material cost 300 200
Direct labor cost 100 400

A) 4.00
B) 4.20
C) 4.67
D) 5.25

Question 2

The normal balance of the drawing account is a debit.
a. True
b. False

Indicate whether the statement is true or false