Question 6.Question :
(TCO 6) Handy Display Company manufactures display cases to be
sold to retail stores. The cases come in three sizes: large, medium,
and small. Currently, Handy Display Company uses a single plant-
wide overhead rate to allocate its $3,357,800 of annual
manufacturing overhead. Of this amount, $1,000,000 is associated
with the Large Case line, $1,560,000 is associated with the Medium
Case line, and $1,485,000 is associated with the Small Case line.
Handy Display Company is currently running a total of 50,000
machine hours: 20,000 in the Large Case line, 24,000 in the
Medium Case line, and 15,000 in the Small Case line. Handy
Display Company uses machine hours as the cost driver for
manufacturing overhead costs.
Requirement: Calculate the departmental overhead rate for each of
the three departments listed.
30 of 30
Looks like a typo
Question 7.Question :
(TCO 2) Fred Co. incurred costs of $900,000 for direct materials
(raw) purchased. Direct labor was $10,000 and factory overhead
was $10,000 for March.
Inventories were as follows:
raw materials beginning $1,000; raw materials ending $2,000
work-in-process beginning $190,000; work-in-process ending
finished goods beginning $10,000; finished goods ending $10,500
What is the cost of goods manufactured? Please show your work.