Auerbach Enterprises Complete: Case 3A (Auerbach Enterprises) In this case, you are provided the overhead cost data for the Auerbach Enterprises. Management needs advice in determining how to allocate
Week 2 Hints
1 – Departmental rates – Divide the overhead costs for each process by the machine hours for that process
2 – Company-wide rate – Divide total overhead by total machine hours
3 – A – Overhead per batch using rate in #2
B – Overhead per batch using rates in #1
4 – A – Unit costs just like 3A
B - Unit costs just like 3B
5 – A – Total costs just like 3A
B - Total costs just like 3B
6 – Should we use company-wide rates or department rates? Why? Is one method better?