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28 August, 19:55

Case company allocates $5 overhead to each unit produced. the company uses a plantwide overhead rate with machine hours as the allocation base. given the amounts below, how many machine hours does the company expect in department 2?

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  1. 28 August, 21:47
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    Let Department 2 Machine hours Be x, and using the equation below.

    Find ATQ:

    5 = (440000 + 245000) / (74000 + x)

    => 370000 + 5x = 685000

    =>x = 63000

    Therefore, there are 63,000 machine hours that the company expects in Department 2.
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