27 of 28 (0 complete) This Test: 100 pts possible A radial ire manufacturer prod

Question

27 of 28 (0 complete) This Test: 100 pts possible A radial ire manufacturer produces products in two departments-Divisions A and B. The nd B have estimated manufacturing overheed costs of $170,000 total estimated machine hours were 30,000, and direct labor hours were 22000 for the compeny uses separate year Calculate thed predetermined overhead slocation rates for each department to allocate ts overhead epartmental predetermined overheed alocation rates (Round your answer to the nearest cent Divisions A and $340,000, respectively. Division A uses machine hours as the allocation base, and Division B uses direct labor hours as the albcation base The O A. Division A-$15.45, Division 8-55.67 O B. Division A-$5 67, Division 8-$15.45 O C. Division A-$7.73, Division B-$11.33 O D. Division A -$11.33, Division 8-$7.73

Explanation / Answer

Calculate predetermine overhead rate :

Predetermine overhead rate = Estimated overhead/Estimated allocation base

Division A = 170000/30000 = 5.67

Division B = 340000/22000 = 15.45

so answer is b) Division A-$5.67, Division B-$15.45

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