A company produces garden benches that go through two departments, department 1A1 and department 2B2, before they are complete. Expected costs and activities for the two departments are shown below. Both departments have departmental overhead rates based on machine hours. Therefore, the overhead rates for department 1A1 and department 2B2 are the same.

Question

A company produces garden benches that go through two departments, department 1A1 and department 2B2, before they are complete. Expected costs and activities for the two departments are shown below. Both departments have departmental overhead rates based on machine hours. Therefore, the overhead rates for department 1A1 and department 2B2 are the same.
A company produces garden benches that go through two departments, department 1A1 and department 2B2, before they are complete. Expected costs and activities for the two departments are shown below. Both departments have departmental overhead rates based on machine hours. Therefore, the overhead rates for department 1A1 and department 2B2 are the same.

Quizplus · Accepted Answer

Dept. 1A1 $225,400/70,000 MH = $3.22 per MH
Dept. 2B2 $250,800/60,000 MH = $4.18 per MH

A Company Produces Garden Benches That Go Through Two Departments