overhead cost 461289

The overhead costs that Lucca Industries, Inc., used to compute its overhead rate for the past year are as follows:

Indirect materials $79,200

Maintenance 14,900

Outside service contract 17,300

Indirect labor 79,100

Factory supervison 42,900

Depreciation 85,000

Factory Insurance 8,200

Property taxes 6,500

Heat, Light, power 7,700

Miscellaneous 5,760

Total Overhead $346,560

Don't use plagiarized sources. Get Your Custom Essay on
overhead cost 461289
For $10/Page 0nly
Order Essay

The allocation base for the past year was 45,600 total machine hours. For the next year, all overhead costs except depreciation, property taxes, and miscellaneous overhead are expected to increase by 10 percent. Depreciation should increase by 12 percent, and property taxes and miscellaneous overhead are expected to increase by 20 percent. Plant capacity in terms of machine hours used will increase by 4,400 hours. Compute the overhead rate for next year.


Calculate the price of your paper

Total price:$26

Need a better grade?
We've got you covered.

Order your paper