Technics Inc

question 90

Essay

Technics Inc.,a manufacturing company,utilizes job order costing.Each division establishes its own estimates regarding overhead,which are as follows:
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Division A Division B
Total estimated overhead $128,000 $261,000
Total estimated machine hours 16,000 72,500
Total estimated direct labor costs $155,000 $290,000
If Division A allocates overhead on the basis of machine hours,and Division B allocates overhead as a percentage of direct labor costs,what would the predetermined overhead rate be for each division?

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Definitions:

Convergent Evolution

The process by which unrelated or distantly related organisms evolve similar physical features independently, due to adaptation to similar environments or ecological niches.

Biodiversity

The variety and variability of life forms within a given ecosystem, bioregion, or on the entire Earth, essential for ecosystem health and resilience.

Speciation

The evolutionary process by which new biological species arise due to factors such as geographic isolation or genetic divergence.

Fossil Record

The accumulation of evidence from preserved remains or impressions of organisms from past geologic ages.