Flash Industries

Feb 3rd, 2012
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Question 1 Solution Overhead rate for department A is estimated at 9.20 \$ perdirect labor hour. Here direct labor hour is used as base to estimate overhead rate as department B is more labor intensive. Overhead rate for department b stands at 12.00 \$ per machine hour. Here machine hour is used as the base to estimate overhead rate as department B is more automated. Detailed calculation is presented below Question 3 Solution Final overhead rate for Department A = 8.79\$ per direct labor hour. Final overhead rate for Department B = 12.07\$ per machine hour. Detailed calculation is presented below Department A Department overhead Cost 299,000\$ Direct Labor Hours 34,000 Overhead rate(299,000\$/34,000) 8.79\$ p dlh

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