# 9. Direct labor hours are used as the allocation basis for indirect costs per quarter. A total am...

###### Question:

9. Direct labor hours are used as the allocation basis for indirect costs per quarter. A total amount of S450,000 is to be allocated at each plant in each quarter. Direct Labor Hours Quarter O Quarter 02 Machining Heavy LightHeavy Light 500 1,500 Humboldt2,00800 Concource 1000 800 800 2,000 Determine the indirect cost rates for the Humboldt plant for each quarter if each type of machining is allocated 509% of the indirect cost. a) b) Determine the blanket rate for Q for Humboldt. Calculate the amount of indirect cost charged to light machining only using this blanket quarterly rate, and the amount charged using the rate determined in part (a). If the rate that is sensitive to the type of machining is correct, by how much is light machining overcharged or undercharged when the blanket rate is used? c Determine the blanket indirect cost rate for the Concourse plant for each quarter

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