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Hello students, here is a question.
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Sanderson fine furnishing a manufacturer's unscaled custom furniture.
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The sanderson's currently uses a plant wide overhead rate based on the direct labor asked to allocate 1 million of manufacturing overhead to the individual job.
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However, margaret garman, owner of ceo is considering refining of company costing system and using a departmental overhead rate.
00:26
Currently the machinery department incurred $660 ,000 the manufacturing overhead while the furnishing department incurs 340 ,000 as a manufacturing overhead.
00:37
Garman has identified a machine as as a primary manufacturing overhead cost driven in the machine department of direct labor as the primary cost for the driver for finished department will be sanderson plant completed a job of 450 and 455 on may 15th.
00:54
Both job incurred a total 5 dlrs throughout the entire production process.
01:00
The job 450 incurred 3 mh in the machine department 4 dlrs of finishing department.
01:07
Dlrs occurred in the machine department of job 455 incurred in 4 mh in the machine department of 3 dlrs of furnishing department other 2 dlrs occurred in the machines of department requirement.
01:19
So here we need to compute a plant wide overhead rate assuming that sanderson expects to incur 20 ,000 of total dlrs during an year...