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I. Compute plantwide overhead rates
Renfro Manufacturing identified the following data in its two production departments.
1. What is the company’s single plantwide overhead rate based on direct labor hours?
2. What is the company’s single plantwide overhead rate based on machine hours?
3. What are the company’s departmental overhead rates if the assembly department assigns overhead based on direct labor hours and the finishing department assigns overhead based on machine hours?
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The estimated variable manufacturing overhead was $7.17 per labor hour and the estimated total fixed manufacturing overhead was $584,320. The actual labor hours for the year turned out to be 33,300.
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