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A Company's Total Expected Overhead Costs and Related Overhead Data

question 125

Essay

A company's total expected overhead costs and related overhead data are shown below.
 Department A  Department B  Direct labor hours 75,000DLH30,000DLH Machine hours 3,000MH6,000MH Manufacturing overhead costs ?? Departmental overhead rate $2.40 per DLH $36 per MIH \begin{array} { | l | l | l | } \hline & \text { Department A } & \text { Department B } \\\hline \text { Direct labor hours } & 75,000 \mathrm { DLH } & 30,000 \mathrm { DLH } \\\hline \text { Machine hours } & 3,000 \mathrm { MH } & 6,000 \mathrm { MH } \\\hline \text { Manufacturing overhead costs } & ? & ? \\\hline \text { Departmental overhead rate } & \$ 2.40 \text { per DLH } & \$ 36 \text { per MIH } \\\hline\end{array} a. Compute estimated manufacturing overhead costs for Department A.
b. Compute estimated manufacturing overhead costs for Department B.

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