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Question
Base Runner, Inc. manufactures baseball bats that go through two operations, cutting and sanding, before they are complete. Expected costs and activities for the two departments are shown in the following table:
| Cutting | Sanding | |
| Direct labor hours | 50,000 DLH | 5,000 DLH |
| Machine hours | 25,000 MH | 50,000 MH |
| Overhead costs | $50,000 | $37,500 |
a. Compute a departmental overhead rate for the cutting department based on machine hours.
b. Compute a departmental overhead rate for the sanding department based on machine hours.
Answer
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Related questions
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