Question
1. Linen Ltd. has three departments. Budgeted overhead costs, budgeted direct labour hours, and budgeted direct machine hours are shown below: Cutting Department Moulding Department
1. Linen Ltd. has three departments. Budgeted overhead costs, budgeted direct labour hours, and budgeted direct machine hours are shown below: Cutting Department Moulding Department Polishing Department Overheads 560,000 320,000 240,000 Direct labour hours 20,000 20,000 30,000 Direct machine hours 10,000 10,000 15,000 Overheads are assigned on a machine hours basis. What is the blanket overhead rate and the department overhead rate for the Polishing Department? a) Blanket overhead rate 32; Polishing department overhead rate 16 b) Blanket overhead rate 18.67; Polishing department overhead rate 8 c) Blanket overhead rate 28; Polishing department overhead rate 5.60 d) None of the above
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