Base Runner, Inc A Compute a Departmental Overhead Rate for the Cutting Department

question 101

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:
$$\begin{array} { | l | l | l | } \hline & \text { Cutting } & \text { Sanding } \\\hline \text { Direct labor hours } & 50,000 \mathrm { DLH } & 5,000 \mathrm { DLH } \\\hline \text { Machine hours } & 25,000 \mathrm { MH } & 50,000 \mathrm { MH } \\\hline \text { Overhead costs } & \$ 50,000 & \$ 37,500 \\\hline\end{array}$$ 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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Definitions:

Electra Complexes

A psychoanalytic concept referring to a girl’s psychosexual competition with her mother for possession of her father.

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Assistance provided by an individual, offering care, empathy, and understanding to help another person cope with emotional distress.

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Financial or material aid given to individuals or groups to assist them in sustaining a certain level of living.

Adjustment

The psychological process of adapting or coping with new, challenging, or changing life situations or environments.