Reliable Car? Parts, a manufacturer of spare? parts, has two production departme
ID: 2523768 • Letter: R
Question
Reliable Car? Parts, a manufacturer of spare? parts, has two production departmentslong dashAssembling and Packaging. The Assembling Department is? mechanized, while the Packaging Department is labor oriented. Estimated manufacturing overhead costs for the year were $ 17, 700 ,000 for Assembling and $ 10,900 ,000 for Packaging. Calculate the department predetermined overhead allocation rates for the Assembling and Packaging? Departments, respectively, if the total estimated machine hours were 34,000 and labor hours were 24,000 for the year.? (Round your answer to the nearest? cent.)
a. $320.59, $737.50
b.$520.59, $737.50
c.$737.50, $320.59
d. $520.59, $454.17
Explanation / Answer
Departmental overhead rate = Estimated overhead/estimated allocation base
Assembling department = 17700000/34000 = 520.59
Packaging department = 10900000/24000 = 454.17
so answer is d) $520.59;$454.17