Use the following information to answer item(s) below.
Meesen Inc. operates two support departments (A and B) and two producing departments (C and D). Budgeted costs and normal activity levels are given below. The costs of Department A are allocated on the basis of number of employees, and the costs of Department B are allocated on the basis of maintenance hours.
-If Department D uses direct labour hours to allocate overhead to units of product, the overhead rate per direct labour hour for Department D would be
A) $22.93.
B) $18.13.
C) $16.80.
D) $16.00.

Question

Use the following information to answer item(s) below.
Meesen Inc. operates two support departments (A and B) and two producing departments (C and D). Budgeted costs and normal activity levels are given below.  The costs of Department A are allocated on the basis of number of employees, and the costs of Department B are allocated on the basis of maintenance hours.
-If Department D uses direct labour hours to allocate overhead to units of product, the overhead rate per direct labour hour for Department D would be
A) $22.93. 
B) $18.13. 
C) $16.80. 
D) $16.00.

Quizplus · Accepted Answer

Department D uses direct labour hours to allocate overhead to units of product. So, the overhead rate per direct labour hour for Department D would be $22.93.

Use the Following Information to Answer Item(s) Below