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

question 145

Essay

A company's total expected overhead costs and related overhead data are shown in the following table:
$$\begin{array} { | l | l | l | } \hline & \text { Department A } & \text { Department B } \\\hline \text { Direct labor hours } & 85,000 \mathrm { DLH } & 72,000 \mathrm { DLH } \\\hline \text { Machine hours } & 79,050 \mathrm { MH } & 37,395 \mathrm { MH } \\\hline \text { Manufacturing overhead costs } & ? & ? \\\hline \text { Departmental overhead rate } & \$ 4 \text { per } \mathrm { MH } & \$ 8.31 \text { per DLH } \\\hline\end{array}$$ a. Compute estimated manufacturing overhead costs for Department A.
b. Compute estimated manufacturing overhead costs for Department B.
c. Compute the departmental overhead rate based on direct labor hours for Department A.
d. Compute the departmental overhead rate based on machine hours for Department B.

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Definitions:

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