Turtle Company Produces T-Shirts That Go Through Two Operations, Cutting

question 58

True/False

Turtle Company produces t-shirts that go through two operations, cutting and sewing, before they are complete.Expected costs and activities for the two departments are shown below.Given this information, the departmental overhead rate for the cutting department based on direct labor hours is $2.69 per direct labor hour (rounded to two decimals).
$$\begin{array} { l l ll} &{ \text { Cutting } }&\text { Sewirg } \\\text { Direct labor hours } & 250,000 & 75,000 \mathrm { DLH } \\\& \text { DLH } & \\\text { Machine hours } & 125,000 & 150,000 \mathrm { MH }\\& \mathrm { MH } & \\\text { Overhead costs } & \$ 500,000 & \$ 375,000\end{array}$$

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Definitions:

Bonds

Fixed-income investment products that represent loans made by an investor to a borrower, typically corporate or governmental.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that serve as a global framework for the preparation of public company financial statements.

Premium Account

An upgraded account or service that a customer opts for, typically providing additional features or benefits for an extra cost.

Discount Account

An account that represents the difference between a bond's face value and its selling price when it is sold at less than its face value.