Chap 4 - Activity Based Costing - Practice

School: Prairie View A&M University - Course: ACCT 3313 - Subject: Accounting

1) Plantwide overhead rate =Estimated total manufacturing overhead cost Estimated total machine hours =1,746,000 18,000 =97 $ per machine hour 2)Departmental overhead rates Dark chocolate =580,000 =116 Estimated machine hours5,000 Milk chocolate =802,000 =89 Estimated machine hours9,000 White chocolate366,000 =92 Estimated machine hours4,000 Estimated manufacturing overhead cost=Estimated manufacturing overhead cost=Estimated manufacturing overhead cost=
 
Which products have been overcosted or undercosted by the plantwide system? $ per machine hourUndercosted $ per machine hourOvercosted $ per machine hourOvercosted

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