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Question
A companys total expected overhead costs and related overhead data are shown in the following table:
| Department A | Department B | |
| Direct labor hours | 85,000 DLH | 72,000 DLH |
| Machine hours | 79,050 MH | 37,395 MH |
| Manufacturing overhead costs | ? | ? |
| Departmental overhead rate | $4 per MH | $8.31 per DLH |
a. Compute estimated manufacturing overhead costs for Department A.
(b. Compute estimated manufacturing overhead costs for Department B.
c. Compute the departmental overhead rate based on direct labor hours for Department A.
d. Compute the departmental overhead rate based on machine hours for Department B.
Answer
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