A company produces surgical equipment that goes through three departments, 1A1, 2B2, and 3C3, before they are complete. Expected costs and activities for the three departments are shown below. All departments have departmental overhead rates based on direct labor hours. Therefore, the overhead rate for each department is $5 per direct labor hour.

Question

A company produces surgical equipment that goes through three departments, 1A1, 2B2, and 3C3, before they are complete. Expected costs and activities for the three departments are shown below. All departments have departmental overhead rates based on direct labor hours. Therefore, the overhead rate for each department is $5 per direct labor hour.
A company produces surgical equipment that goes through three departments, 1A1, 2B2, and 3C3, before they are complete. Expected costs and activities for the three departments are shown below. All departments have departmental overhead rates based on direct labor hours. Therefore, the overhead rate for each department is $5 per direct labor hour.

Quizplus · Accepted Answer

Dept. 1A1 = $114,150/22,830 DLH = $5.00 per DLH
Dept. 2B2 = $213,000/10,650 DLH = $20.00 per DLH
Dept. 3C3 = $73,000/29,200 DLH = $2.50 per DLH

A Company Produces Surgical Equipment That Goes Through Three Departments