How much overhead should be assigned


Response to the following problem:

A competitor also produces two models of suitcases. The total overhead for this company is also estimated to be $6,900,000 ($5,000,000 in department A and $1,900,000 in department B). The total direct labor hours are estimated to be 2,000,000 in department A and 300,000 in department B. If the "on the go suitcase" uses 3 hours of direct labor in department A and 3 hours of labor in department B, how much overhead should be assigned using the departmental overhead rate method?

Solution Preview :

Prepared by a verified Expert
Cost Accounting: How much overhead should be assigned
Reference No:- TGS02128827

Now Priced at $20 (50% Discount)

Recommended (95%)

Rated (4.7/5)