Online - Week 7 Chapter 4.docx - Name Lindsey Crof ACT 212-7102(On-Line Chapter 4 Week 7 Assignment 1 Big Trail Running Company has started to produce

Online - Week 7 Chapter 4.docx - Name Lindsey Crof ACT...

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Name: Lindsey CrofACT 212-7102 (On-Line)Chapter 4/ Week 7 Assignment1. Big Trail Running Company has started to produce running apparel in addition to the trail running shoes that they have manufactured for years. They feel that a departmental overhead rate would best reflect their overall manufacturing overhead usage. Based on research the following information was gathered for the upcoming year:Machining DepartmentFinishing DepartmentEstimated Manufacturing Overhead by Department$500,000$400,000Trail Running Shoes160,000 machine hours16,000 direct labor hoursRunning Apparel40,000 machine hours64,000 direct labor hoursManufacturing overhead is driven by machine hours for the machining department and direct labor hours for the finishing department. At the end of the year, the following information was gathered related to the production of the trail running shoes and running apparel:Machining DepartmentFinishing DepartmentTrail Running Shoes162,000 hours15,500 hoursRunning Apparel37,000 hours65,000 hours
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