Gabriel Company Uses the Department Approach for Allocating Overhead

question 48

Multiple Choice

Gabriel Company uses the department approach for allocating overhead.The Assembly Department uses direct labor hours as its allocation base and the Grinding Department uses machine hours as its allocation base.The data for each is as follows:

What is the allocation rate for each Department (round to the nearest cent) ?

• A)Assembly = $11.00 per direct labor hour;Grinding = $220.00 per machine hour.
• B)Assembly = $0.13 per direct labor hour;Grinding = $0.02 per machine hour.
• C)Assembly = $8.00 per direct labor hour;Grinding = $60.00 per machine hour.
• D)Assembly = $10.48 per direct labor hour;Grinding = $10.48 per machine hour.
• E)None of the answer choices is correct.

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