Base Runner,Inc ACompute a Departmental Overhead Rate for the Cutting Department Based

question 67

Essay

Base Runner,Inc.manufactures baseball bats that go through two operations,cutting and sanding,before they are complete.Expected costs and activities for the two departments are shown in the following table:
$$\begin{array} { | l | c | c | } \hline & \text { Cutting } & \text { Sanding } \\\hline \text { Direct labor hours } & 50,000 \mathrm { DLH } & 5,000 \mathrm { DLH } \\\hline \text { Machine hours } & 25,000 \mathrm { MH } & 50,000 \mathrm { MH } \\\hline \text { Overhead costs } & \$ 50,000 & \$ 37,500 \\\hline\end{array}$$
a.Compute a departmental overhead rate for the cutting department based on machine hours.
b.Compute a departmental overhead rate for the sanding department based on machine hours.

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