Condelezza Co.manufactures two products, A and B, in two production departments, Assembly and Finishing.Condelezza Co.expects to produce 10,000 units of Product A and 20,000 units of Product B in the coming year.Budgeted factory overhead costs for the coming year are:
The machine hours expected to be used in the coming year are as follows:
a Compute the plantwide factory overhead rate.
Compute the production department factory overhead rates.
b Compute the factory overhead per unit for each product using 1 the single plantwide rate and 2 production department factory overhead rates.
c Which method is better plantwide or department? Why?

Question

Condelezza Co.manufactures two products, A and B, in two production departments, Assembly and Finishing.Condelezza Co.expects to produce 10,000 units of Product A and 20,000 units of Product B in the coming year.Budgeted factory overhead costs for the coming year are:
  The machine hours expected to be used in the coming year are as follows:
  a Compute the plantwide factory overhead rate.
Compute the production department factory overhead rates.
b Compute the factory overhead per unit for each product using 1 the single plantwide rate and 2 production department factory overhead rates.
c Which method is better plantwide or department? Why?

Quizplus · Accepted Answer

The Answer of Condelezza Co.manufactures two products, A and B, in two production departments, Assembly and Finishing.Condelezza Co.expects to produce 10,000 units of Product A and 20,000 units of Product B in the coming year.Budgeted factory overhead costs for the coming year are:
  The machine hours expected to be used in the coming year are as follows:
  a Compute the plantwide factory overhead rate.
Compute the production department factory overhead rates.
b Compute the factory overhead per unit for each product using 1 the single plantwide rate and 2 production department factory overhead rates.
c Which method is better plantwide or department? Why?