Presented below are certain operating data for the four departments of Modern Manufacturing Company.

Allocate, to the two production departments, the costs of service departments 1 and 2, using factory floor space and number of workers, respectively, as bases. What is the apparent manufacturing overhead rate for each production department if planned direct labor hours are the overhead application base?

Transcribed Image Text:

Total overhead cost either identifiable with or to each department.. Square feet of factory floor space. Number of factory workers.. Planned direct labor hours for the year Service 2 Production 2 $45,000 $60,000 $55,000 $116,000 90,000 20 45,000 60 25,000 32,000