Bobke Technologies Manufactures Three Types of Computers for a Well

Essay

Bobke Technologies manufactures three types of computers for a well known national brand.The three types are: laptops,desktops,and tablets.Currently,Bobke uses a single plant-wide overhead rate to allocate its $1,667,250 of annual manufacturing overhead.Of this amount,$562,000 is associated with laptops,$492,000 is associated with desktops,and $612,750 is associated with tablets.Bobke is currently using a total of 22,150 machine hours: 7,500 for laptops,8,200 for desktops,and 6,450 for tablets.Bobke uses machine hours to allocate overhead costs.
Required:
a.Calculate the plant-wide manufacturing overhead rate.
b.Calculate the departmental overhead rate for each of the three departments listed.
c.Which product line(s)have been overcosted by using the plant-wide manufacturing overhead rate? By how much per machine hour? Which product line(s)have been undercosted by using the plant-wide manufacturing overhead rate? By how much per machine hour?