Bauer Manufacturing uses departmental cost driver rates to allocate manufacturing overhead costs to products.Manufacturing overhead costs are allocated on the basis of machine-hours in the Machining Department and on the basis of direct labor-hours in the Assembly Department.At the beginning of 2018,the following estimates were provided for the coming year:

The accounting records of the company show the following data for Job #316:

For Bauer Manufacturing,what is the annual manufacturing overhead cost-allocation rate for the Machining Department?

Question

Bauer Manufacturing uses departmental cost driver rates to allocate manufacturing overhead costs to products.Manufacturing overhead costs are allocated on the basis of machine-hours in the Machining Department and on the basis of direct labor-hours in the Assembly Department.At the beginning of 2018,the following estimates were provided for the coming year:

The accounting records of the company show the following data for Job #316:

For Bauer Manufacturing,what is the annual manufacturing overhead cost-allocation rate for the Machining Department?

The accounting records of the company show the following data for Job #316:

For Bauer Manufacturing,what is the annual manufacturing overhead cost-allocation rate for the Machining Department?

Quizplus · Accepted Answer

$300,000 / 20,000 mh = $15.00 per mh

Bauer Manufacturing Uses Departmental Cost Driver Rates to Allocate Manufacturing