Calculation of Over heads to be assigned to a unit of output.
Lakeside Company's budget for the coming year includes $8,000,000 for manufacturing overhead, 100,000 hours of direct labor, and 500,000 hours of machine time. If Lakeside applies overhead using a predetermined rate based on machine-hours, what amount of overhead will be assigned to a unit of output which requires 0.5 machine hours and 0.25 labor hours to complete?
If Lakeside applies overhead using a predetermined rate based on labor-hours, what amount of overhead will be assigned to a unit of output which requires 0.5 machine hours and 0.25 labor hours to complete?