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Solution Date 1a) Calculation of plant wide overrate overhead rate Plant wide overhead rate - Estimated manufacturing overhead / Direct Labour Cost = $873,600 /624,000 140% dicct Labow Cost Thus, Plantwide overhead rate is 140% direct labour cost. ef Ib) Calculation coef amount overhead cost that would be applied of manufacturing to koopers job. Manufacturing overhead – Faibricating overhead + Machining overhead + Assembly owerhead. = $6,160 + $980+$ 9,800 $ 16,940 Working Notca 4,400*140% = 6,160 980 7000* 140% = 9,800 te 700 * 140 % 2) 32 Scanned by TapScanner

Date as 20) Calculation of puedetermined oveshead Mate for Fabrication department using the direct Labor allocation base Overificad sate - Estimated overbead cost for fabrication Llabour Last of fabrication =) $364,000 / 208,000 = 175 % cyf direct labour cost .

Overhead rate s Estimated overhead coast for machining / Labour cost of og machining t = $16, 600 / lo9, 000 = 400% of direct Labows Cost. Overhead rate - Estimated overhead cost for asembly / Labour cost of assembly -$ 93,600 $312,000 30% of direct Labour cost, Predetermined evenbeed Rate Fabricating Department Machining Department Assemblyo Depurtment - 175% 400 % 30% Scanned by TapScanner

Date 2b) Calculation of amount of manufacturing overhead cost that would be applied to koopers job based on departmental manufacturing Mate Manufacturing oueshead - Fabricating overhead + Machining Overhead & Assembly Overheast $ 7,650 +$ 2800+$ 2,100 $ 12,550 Wazbing Notes u 4,400*174% = 7,650 21 400*400% 3) 7000*30% = 2100 2,800 . Scanned by TapScanner

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