Aurora Corporation produces outdoor security lighting products. All products go through three processes before completion. Use the expected overhead costs and related data shown below to compute departmental overhead rates based on machine hours in Department A1A; based on direct labor hours in Department B2B; and machine hours in Department C3C.
A) Dept. A: $10 per MH; Dept B: $2 per DLH; Dept C: $4 per MH.
B) Dept. A: $6 per MH; Dept B: $5 per DLH; Dept C: $3 per MH.
C) Dept. A: $10 per MH; Dept B: $5 per DLH; Dept C: $4 per MH.
D) Dept. A: $6 per MH; Dept B: $5 per DLH; Dept C: $4 per MH.
E) Dept. A: $10 per MH; Dept B: $2 per DLH; Dept C: $3 per MH.

Question

Aurora Corporation produces outdoor security lighting products. All products go through three processes before completion. Use the expected overhead costs and related data shown below to compute departmental overhead rates based on machine hours in Department A1A; based on direct labor hours in Department B2B; and machine hours in Department C3C. 
A) Dept. A: $10 per MH; Dept B: $2 per DLH; Dept C: $4 per MH. 
B) Dept. A: $6 per MH; Dept B: $5 per DLH; Dept C: $3 per MH. 
C) Dept. A: $10 per MH; Dept B: $5 per DLH; Dept C: $4 per MH. 
D) Dept. A: $6 per MH; Dept B: $5 per DLH; Dept C: $4 per MH. 
E) Dept. A: $10 per MH; Dept B: $2 per DLH; Dept C: $3 per MH.

Quizplus · Accepted Answer

Dept. A1A: $540,000/54,000 MH = $10 per MH
Dept. B2B: $160,000/80,000 DLH = $2 per DLH
Dept. C3C: $216,000/54,000 MH = $4 per MH

Aurora Corporation Produces Outdoor Security Lighting Products