The allocation base for the past year was 45600 total

Assignment Help Accounting Basics

Reference no: EM13592388

The overhead costs that Lucca Industries, Inc., used to compute its overhead rate for the past year are as follows:

Indirect materials $79,200
Maintenance 14,900
Outside service contract 17,300
Indirect labor 79,100
Factory supervison 42,900
Depreciation 85,000
Factory Insurance 8,200
Property taxes 6,500
Heat, Light, power 7,700
Miscellaneous 5,760
Total Overhead $346,560

The allocation base for the past year was 45,600 total machine hours. For the next year, all overhead costs except depreciation, property taxes, and miscellaneous overhead are expected to increase by 10 percent. Depreciation should increase by 12 percent, and property taxes and miscellaneous overhead are expected to increase by 20 percent. Plant capacity in terms of machine hours used will increase by 4,400 hours. Compute the overhead rate for next year.

Reference no: EM13592388

Questions Cloud

As of june 30 2012 the bank statement showed an ending : as of june 30 2012 the bank statement showed an ending balance of 13879.85. the unadjusted cash account balance was 13

Cola company manufactures a product with a standard direct : cola company manufactures a product with a standard direct labor cost of 2 hours at 24 per hour. during july 2000 units

A company has a process that results in 15000 pounds of : a company has a process that results in 15000 pounds of product x that can be sold for 8 per pound. an alternative

Record the purchase of the drill press and the depreciation : at the beginning of 2012 precision manufacturing purchased a new computerized drill press for 50000. it is expected to

The allocation base for the past year was 45600 total : the overhead costs that lucca industries inc. used to compute its overhead rate for the past year are as follows

Seville company manufactures a product with a unit variable : seville company manufactures a product with a unit variable cost of 42 and a unit sales price of 75. fixed

Burhlers cvp income statement includes sales of 2000 units : burhlers cvp income statement includes sales of 2000 units a selling price of 100 per unit variable expenses of 60 per

Vektek inc thinks machine hours is the best the activity : vektek inc. thinks machine hours is the best the activity base for its manufacturing overhead. the estimate of annual

Kone company sells two types of computer chips the sales : kone company sells two types of computer chips. the sales mix is 30 q-chip and 70 q-chip . q-chip has variable cost per

User Account

All Pages