Superior Products Manufacturing identified the following data in its two production departments:
$$\begin{array} { | l | c | c | }
\hline & \text { Assembly } & \text { Firishing } \
\hline \text { Marufacturing overhead costs } & \$ 225,000 & \$ 420,000 \
\hline \text { Direct labor hours worked } & 6,600 \mathrm { DLH } & 10,000 \mathrm { DLH } \
\hline \text { Machine hours used } & 2,400 \mathrm { MH } & 5,200 \mathrm { MH } \
\hline
\end{array}$$ Compute departmental overhead rates assuming the Assembly rate is based on machine hours and the Finishing rate is based on direct labor hours.

Question

Superior Products Manufacturing identified the following data in its two production departments:
 $$\begin{array} { | l | c | c | } 
\hline & \text { Assembly } & \text { Firishing } \
\hline \text { Marufacturing overhead costs } & \$ 225,000 & \$ 420,000 \
\hline \text { Direct labor hours worked } & 6,600 \mathrm { DLH } & 10,000 \mathrm { DLH } \
\hline \text { Machine hours used } & 2,400 \mathrm { MH } & 5,200 \mathrm { MH } \
\hline
\end{array}$$ Compute departmental overhead rates assuming the Assembly rate is based on machine hours and the Finishing rate is based on direct labor hours.

Quizplus · Accepted Answer

The Answer of Superior Products Manufacturing identified the following data in its two production departments:
 $$\begin{array} { | l | c | c | } 
\hline & \text { Assembly } & \text { Firishing } \
\hline \text { Marufacturing overhead costs } & \$ 225,000 & \$ 420,000 \
\hline \text { Direct labor hours worked } & 6,600 \mathrm { DLH } & 10,000 \mathrm { DLH } \
\hline \text { Machine hours used } & 2,400 \mathrm { MH } & 5,200 \mathrm { MH } \
\hline
\end{array}$$ Compute departmental overhead rates assuming the Assembly rate is based on machine hours and the Finishing rate is based on direct labor hours.

Superior Products Manufacturing Identified the Following Data in Its Two