1.Departmental Rates

Nabors Company gathers the following departmental data for the second year. Two types of stereo units are produced:

2. Departmental Rates Nabors Company gathers the following departmental data for the second year. Two types of stereo units are produced: Fabrication Assembly Budgeted overhead $120,000 $60,000 Expected and actual usage (direct labor hours): Deluxe 3,000 2,000 Regular 3,000 43,000 TOTAL DIRECT LABOR HOURS 6,000 45,000 Fabrication Assembly Expected and actual usage (machine hours): Deluxe 2,000 5,000 Regular 18,000 5,000 TOTAL MACHINE HOURS 20,000 10,000 In addition to the departmental data, the following information is provided: Deluxe Regular Units produced 5,000 50,000 Prime costs (DM+DL) $40,000 $300,000