Question
ABC Company makes two products, fence panels & gates. Fence panels are made by Department F and gates are made by Department G. ABC Company
ABC Company makes two products, fence panels & gates. Fence panels are made by Department F and gates are made by Department G. ABC Company has provided the following data associated with these two products: Salary for supervisor of Department F $67,000 Salary for supervisor of Department G $49,000 Salary for plant manager $253,900 Factory utilities $31,000 Materials used for fence panels $49,000 Materials used for gates $42,000 Machine hours for Department F 340 Machine hours for Department G 430 2,100 2,200 Number of fence panels produced Number of gates produced If machine hours is used as the cost driver, what is the allocation rate that will be used to attribute a portion of the indirect costs to Department G? Round answer to nearest whole dollar. $521 $370 $838 5114
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