Departmental overhead rates Lobeck Manufacturing Company operates two service de- partments and two production departments. The following
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Departmental overhead rates Lobeck Manufacturing Company operates two service de- partments and two production departments. The following budgeted data are prepared for the quarter ending March 31.
Overhead is allocated to production using machine hours as a base in the fabricating department and labor hours in the assembly department. Computer department costs are allo- cated to production departments on the basis of budgeted CPU time. Maintenance department costs are allocated to production departments on the basis of budgeted maintenance hours.
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