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Provide a 2 pages analysis while answering the following question: Accounting assessment. Prepare this assignment according to the guidelines found in the APA Style Guide. An abstract is required.
Provide a 2 pages analysis while answering the following question: Accounting assessment. Prepare this assignment according to the guidelines found in the APA Style Guide. An abstract is required. Answers to Question a) The two feasible overhead rates for the year are either the Direct Labor Hours Rate (DLHR) or the Machine Hour Rate (MHR).
DLHR = (Total manufacturing overhead/Direct labor hours)
= (40+200+38+4+6+600+130+402+100), 000/ (100,000)
= 1520000/100000
= 15.2 pounds per DLH
MHR= (1520000/90000)
= 16.9 pounds per MH
(b) The full costing for order No. 101 using each of the rates will be as follows.
Based on DLHR = (15.2*4000) pounds
= 60,800 pounds
Therefore. Raw Material…… 5000
DLC…………….. 60,800
65,800 pounds
Based on MHR = (16.9*1900) pounds
= 32110 pounds
Therefore. Raw Material…..