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Question
Blast Rocket Company manufactures candy-coated popcorn treats that go through two operations, popping and baking, before they are complete. Expected costs and activities for the two departments are shown in the following table:
| Popping | Baking | |
| Direct labor hours | 238,000 DLH | 50,000 DLH |
| Machine hours | 25,000 MH | 141,500 MH |
| Overhead costs | $357,000 | $452,800 |
a. Compute a departmental overhead rate for the popping department based on direct labor hours.
b. Compute a departmental overhead rate for the baking department based on machine hours.
Answer
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Related questions
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