Presented below are certain operating data for the four depart- LOS ments of Tally Manufacturing Company.

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

Transcribed Image Text:

Total manufacturing overhead costs either identifiable with or allocated to each department.... Square feet of factory floor space Number of factory workers.... Planned direct labor hours for the year Service Production 2 $60,000 $72,000 $90,000 $98,000 40,000 50 80,000 10 20,000 30,000