Plantwide labor & overhead hourly rate(July)

Dollars Hours

Labor

casting/stamping 54604 2528

Grinding 38520 2140

Machining 191876 7675

Custom work 81664 3712
Assembly 291784 15357
Total labor 658448 31412

overhead 1099323

Total labor & overhead 1757771

Hourly rate 55.95858

Proposed departmental labor & overhead hourly rates

Labor overhead Total

Department rate/hr /hr cost/hr

casting/stamping 21.6 31.37 52.97

Grinding 18 30.14 48.14

Machining 25 62.52 87.52
Custom work 22 40.48 62.48
Assembly 19 21.19 40.19
 Direct labor-Hr distribution for Three carburettor division activities

spare part
of work for
inventory/ other
typ month division/t
Department CS-29 injectors/ 100 batch (hrs) hrs yp month
casting/stamping 21 305 674
Grinding 12 270 540
Machining 58 1115 2158
Custom work
Assembly 35
Total 126 1690 3372

Departmental overhead rates based on normal volume

Normal overhead
overhead per direct Total
Normal value(DLH) cost labor-hr cost/hr
casting/stamping 2500 78800 31.52 21.6 53.12
Grinding 2400 69000 28.75 18 46.75
Machining 8000 492000 61.5 25 86.5
Custom work 3600 147820 41.06111 22 63.06111
Assembly 17500 352450 20.14 19 39.14
Total 34000 1140070 33.53
 casting/ Custom
stamping Grinding Machining work Assembly Total
Current
method 7050.781

Proposed
(Actual
cost) 1112.37 577.68 5076.16 0 1406.65 8172.86

Revised
(Normal
cost) 1115.52 561 5017 0 1369.9 8063.42

305 270 1115

52.97 48.14 87.52 62.48 40.19
casting/ Custom
stamping Grinding Machining work Assembly Total
Current
method 94570

Proposed
(Actual
cost) 16155.85 12997.8 97584.8 0 0 126738.5

Revised
(Normal
cost) 16201.6 12622.5 96447.5 125271.6
674 540 2158

casting/ Custom
stamping Grinding Machining work Assembly Total
Current
method 188692.3

Proposed
(Actual
cost) 35701.78 25995.6 188868.16 0 0 250565.5

Revised
(Normal
cost) 35802.88 25245 186667 247714.9