barack Motors, Inc. has b

barack Motors, Inc. has b

barack Motors, Inc. has budgeted overhead costs in its factory departments for the coming year as follows:Service Departmets:Factory Administration…………………… $ 140,000Custodial…………………………………….. $   32,000Operation Departments:Machining…………………………………….$ 160,000Finishing……………………………………..$    96,000The company does not distinguish between fixed and variable service department costs and uses the direct method of allocation. Factory administration costs are all allocated on the basis of total labor hours in the operationg departments and custodial costs are allocated on the basisi of square feet of space occupied. Other pertinent budgeted data for the coming year are as follows:In the Machining Department, machine-hors are used as the basis for computing predetermined overhead rates; in the finishing department, direct labor hours are used as the basis for computing predetermined overhead rates.a) the predetermined overhead rate in the machne department for the coming year is closest to_____________.b) the predetermined overhead rate inthe finishing department for the coming year is closest to ____________.c) Suppose barack motors management decides not to allocate service department costs, but rather chooses to use a single plant-wide predetermined overhead rate based on machine-hours. This rate, based on all factory overhead costs for the coming year, is closest to_________________.

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