The following information pertains to Weiss Corporation:
Weiss Corporation does not divide costs into fixed and variable components. Personnel costs are allocated based on the number of employees, and maintenance costs are allocated based on machine-hours. Predetermined overhead rates for Fabrication and Assembly are based on direct labor-hours.
If the direct method is used to allocate service department costs, what is the predetermined overhead rate for the Assembly Department (rounded to 2 decimal places)?

Question

The following information pertains to Weiss Corporation:
  Weiss Corporation does not divide costs into fixed and variable components. Personnel costs are allocated based on the number of employees, and maintenance costs are allocated based on machine-hours. Predetermined overhead rates for Fabrication and Assembly are based on direct labor-hours.
If the direct method is used to allocate service department costs, what is the predetermined overhead rate for the Assembly Department (rounded to 2 decimal places)?

Quizplus · Accepted Answer

The Answer of The following information pertains to Weiss Corporation:
  Weiss Corporation does not divide costs into fixed and variable components. Personnel costs are allocated based on the number of employees, and maintenance costs are allocated based on machine-hours. Predetermined overhead rates for Fabrication and Assembly are based on direct labor-hours.
If the direct method is used to allocate service department costs, what is the predetermined overhead rate for the Assembly Department (rounded to 2 decimal places)?

The Following Information Pertains to Weiss Corporation