Please help me find the wide allocation rate. I\'m completely lost on this. Arch

Question

Please help me find the wide allocation rate. I'm completely lost on this.

Archid lnc, a manufacturer of spare parts, has two production departments-Assembling and Packaging The Assembling department is mechanized, while the Packaging department is labor - oriented. Estimated manufacturing overheads for the year 2015 were $16,800,000 for Assembling and $10,600,000 for Packaging. Calculate the department - wide allocation rates if the total estimated machine hours were 44,000 and labor hours were 23,000 for the year. A $382,$461 B $730,$241 C $241,$730 D $382,$730

Explanation / Answer

Assembly Department 16800000/44000 381.8182 Packaging 10600000/23000 460.8696 The correct answer is A) $ 382, $ 461

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