Rafner Manufacturing identified the following budgeted data in its two production departments. Manufacturing overhead costs Direct...

Question

Rafner Manufacturing identified the following budgeted data in its two production departments.

	Assembly	Finishing
Manufacturing overhead costs	$ 1,247,500	$ 650,000
Direct labor hours	12,500 DLH	20,500 DLH
Machine hours	6,500 MH	16,500 MH

Required:

1. What is the company's single plantwide overhead rate based on direct labor hours?

2. What is the company's single plantwide overhead rate based on machine hours?

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The departmental overhead cost is a common overhead cost, based on amount units that the cost driver the department consumes over an amount of time. It's used to assign expenses to departments on a timely basis.

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Robert Roberts · Accepted Answer

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