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: assembly $310,000 finishing 240,000 total $550,000 the machine hours expected to be used in the coming year are as follows: assembly dept. finishing dept. product a 15,100 9,000 product b 4,900 11,000 total 20,000 20,000 round your answers to two decimal places, if necessary. a. compute the plantwide factory overhead rate.$ per mhcompute the production department factory overhead rates. assembly dept. $ per mhfinishing dept. $ per mh

Instructions are listed below

Explanation:

Giving the following information:

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:

Assembly $310,000

Finishing 240,000

Total $550,000

The machine hours expected to be used in the coming year are as follows:

Assembly Dept.

Product A 15,100

Product B 4,900

Total 20,000

Finishing Dept.

Product A 9,000

Product B 11,000

Total 20,000

A) Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 550,000/40,000= $13.75 per machine hour

B) Departamental rates:

Assembly= 310,000/20,000= $15.5 per machine hour.

Finishing= 240,000/20,000= $12 per machine hour.

answer; normative economics;