Question
A radial tire manufacturer produces products in two departmentslong dashDivisions A and B. The company uses separate predetermined overhead allocation rates for each department to
A radial tire manufacturer produces products in two
departmentslong dashDivisions
A and B. The company uses separate predetermined overhead allocation rates for each department to allocate its overhead. Divisions A and B have estimated manufacturing overhead costs of
$ 150 comma 000$150,000
and
$ 350 comma 000$350,000,
respectively. Division A uses machine hours as the allocation base, and Division B uses direct labor hours as the allocation base. The total estimated machine hours were
30 comma 00030,000,
and direct labor hours were
23 comma 00023,000
for the year. Calculate the departmental predetermined overhead allocation rates. (Round your answer to the nearest cent.)
A.
Division A -
$ 6.52$6.52,
Division B - $ 11.67$11.67
B.
Division A -
$ 15.22$15.22,
Division B - $ 5.00$5.00
C.
Division A -
$ 5.00$5.00,
Division B - $ 15.22$15.22
D.
Division A -
$ 11.67$11.67,
Division B - $ 6.52
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