Company accumulated the following data for 2016:

Required

a. Calculate the company-wide manufacturing overhead rate using machine hours as the allocation base.

b. Calculate the company-wide manufacturing overhead rate using direct labor hours as the allocation base.

c. Calculate departments overhead rates using machine hours in Milling and direct labor hours in Finishing as the allocation bases.

d. Calculate department overhead rates using direct labor hours in Milling and machine hours in Finishing as the allocation bases.

e. Which of these allocation systems seems to be more appropriate? Explain.

Transcribed Image Text:

Milling Department manufacturing overhead... Finishing Department manufacturing overhead. Machine hours used Milling Department.... Finishing Department. Labor hours used Milling Department. Finishing Department. $344,000 $120,000 10,000 hours 2,000 hours 1,000 hours 1,000 hours