Turtle Company Produces T-Shirts Which Go Through Two Operations, Cutting

question 166

True/False

Turtle Company produces t-shirts which go through two operations, cutting and sewing, before they are complete. Expected costs and activities for the two departments are shown below. Given this information, the departmental overhead rate for the cutting department based on direct labor hours is $2.69 per direct labor hour (rounded to two decimals).
$\begin{array}{ccc} & \text { Cutting } & \text { Sewing } \\\text { Direct labor hours } & 250,000 & 75,000 \mathrm{DLH}\\&\text { DLH }\\\text { Machine hours } & 125,000 & 150,000 \mathrm{MH} \\& \mathrm{MH} & \\\text { Overhead costs } & \$ 500,000 & \$ 375,000\end{array}$

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