WearsArt, a local clothing design company, has only two departments (both of them classified as production departments): Design and Production. Budgeted yearly information for these departments is as follows:
Design: 200 square feet; 2,000 direct labor hours, at $25/hour
Production: 800 square feet; 4,000 direct labor hours, at $12/hour
WearsArt budgeted for the following overhead costs this year:
Rent $15,000
Utilities $3,000
Supplies $1,000
Depreciation (of design and production equipment) $1,400
Rent and utilities are allocated to each department based on square footage, and other overhead costs are allocated based on direct labor hours. Design and Production overhead costs are allocated to jobs based on direct labor hours.
What is the rate used to apply overhead to jobs in the Design department?
In the Production department?
(Do not round intermediate calculations, round final answer to nearest dollar.)

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The Answer of WearsArt, a local clothing design company, has only two departments (both of them classified as production departments): Design and Production. Budgeted yearly information for these departments is as follows:
Design: 200 square feet; 2,000 direct labor hours, at $25/hour
Production: 800 square feet; 4,000 direct labor hours, at $12/hour
WearsArt budgeted for the following overhead costs this year:
Rent $15,000
Utilities $3,000
Supplies $1,000
Depreciation (of design and production equipment) $1,400
Rent and utilities are allocated to each department based on square footage, and other overhead costs are allocated based on direct labor hours. Design and Production overhead costs are allocated to jobs based on direct labor hours.
What is the rate used to apply overhead to jobs in the Design department?
In the Production department?
(Do not round intermediate calculations, round final answer to nearest dollar.)

WearsArt, a Local Clothing Design Company, Has Only Two Departments