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Business, 16.06.2021 18:10 ozieera

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

Required:
a. Compute the plantwide factory overhead rate.
b. Compute the production department factory overhead rates.

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