A Company Produces Paint That Goes Through Two Operations, Operation

question 39

True/False

A company produces paint that goes through two operations, operation A and operation B, before it is complete.Expected costs and activities for the two departments are shown below.Given this information, the departmental overhead rate for Department B based on machine hours is $4 per machine hour.
$$\begin{array} { l c c } & \text { Department } & \text { Department } \\& \text { A } & \text { B } \\\text { Machine hours } & 50,000 \mathrm { MH } & 60,000 \mathrm { MH } \\\text { Direct labor hours } & 78,500 \mathrm { DLH } & 100,800 \mathrm { DLH } \\\text { Overhead costs } & \$ 392,500 & \$ 403,200\end{array}$$

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