The total factory overhead for Ospina Company is budgeted for the year at $1,704,000 and divided...
Question:
The total factory overhead for Ospina Company is budgeted for the year at $1,704,000 and divided into two departments: Fabrication, $1,344,000 and Assembly, $360,000. Morris manufactures two office furniture products: credenzas and desks. Each credenza requires four direct labor hours in Fabrication and two direct labor hours in Assembly. Each desk requires three direct labor hours in Fabrication and two direct labor hours in Assembly. Each product is budgeted for 8,000 units of production for the year.
Determine the factory overhead allocated per unit for each product, using the department factory overhead allocation rates.
Factory Overheads:
During the manufacturing process of goods, any expense incurred by the company other than direct material or direct labor cost is called manufacturing overheads. These expenses are incurred to support the manufacturing process.
Answer and Explanation: 1
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View this answerFabrication department:
Data:
Total overhead assigned to production = $1,344,000
Annual production = 8,000
Calculation:
{eq}Factory \ overhead \...
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