Fleming Inc. provided the following dat afor its two producing departments:

    Fleming Inc. provided the following dat afor its two producing departments:

    Polishing Painting Total

    Estimated overhead $500000 $100000 $600000

    Direct Labor Hours

    (expecte and actual):

    Frame A 2000 5000 7000

    Frame B 3000 15000 18000

    Total 5000 20000 25000

    Machiene hours

    Frame A 7000 3000 10000

    Frame B 3000 2000 5000

    Total 10000 5000 15000

    Machiene hours are used to assign the overhead of the polishing department and direct labor hours are used to assign to the painting departemnt. there are
    60000 units of frame A produced and sold and 100000 of frame B.

    Required:

    1. Calculate the overhead rates for each department

    2. Using departmental rates assign overhead to the two products and calculate the overhead cost per unit. How does this compare with the plantwide rate unit
    cost using diferent labor hours?

    3. What if the machine hours in polishing were 2000 for frame A and 8000 for frame B and the direct labor hours used in painting were 14000 and 6000
    respectively? calculate the overhead cost per unit for each product using departamental rates and compare with the plantwide rate unit costs calculated in
    requirement 2. What can you conclude from this outcome?

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