The production section of a firm is serviced by personnel and computing as follows:
Personnel costs are allocated on the number of employees and computing costs on service hours. Overhead rates are based on labour hours. If the direct method is used to allocate support department costs, what is the overhead rate for the Assembly Department?
A) $8
B) $9.25
C) $9.44
D) $10.69

Question

The production section of a firm is serviced by personnel and computing as follows: 
Personnel costs are allocated on the number of employees and computing costs on service hours. Overhead rates are based on labour hours. If the direct method is used to allocate support department costs, what is the overhead rate for the Assembly Department?
A) $8 
B) $9.25 
C) $9.44 
D) $10.69

Quizplus · Accepted Answer

The Answer of The production section of a firm is serviced by personnel and computing as follows: 
Personnel costs are allocated on the number of employees and computing costs on service hours. Overhead rates are based on labour hours. If the direct method is used to allocate support department costs, what is the overhead rate for the Assembly Department?
A) $8 
B) $9.25 
C) $9.44 
D) $10.69

The Production Section of a Firm Is Serviced by Personnel