Indeed Company Makes a Product Using Two Departments: Department 1

question 4

Essay

Indeed Company makes a product using two departments: Department 1 and Department 2.Information on these departments is as follows:
A. Calculate the department overhead rate for each department. Use machine hours as the base in Department 1 and direct labour hours as the base in Department 2.
B. A job has prime cost of $270. It uses 10 machine hours in Department 1 and 15 direct labour hours in Department 2. Calculate the total product cost for the job.
C. Recalculate the department overhead rate for each department. Use direct labour hours as the base in Department 1 and machine hours as the base in Department 2.
D. A job has prime cost of $270. It uses 10 direct labour hours in Department 1 and 15 machine hours in Department 2. Using the rates calculated in part C, calculate the total product cost for the job.

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Definitions:

Frequencies

Frequencies refer to the rate at which a vibration occurs that constitutes a wave, either in materials (sound waves) or in electromagnetic fields (light waves), measured in hertz (Hz).

Earphones

A set of small loudspeakers that fit directly in or over the ears for individual listening.

Microseconds

A unit of time equal to one millionth (10^-6) of a second.

Auditory Neurons

Specialized neurons that transmit sound information from the ear to the brain, allowing for hearing.