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Al's Wooden Turnings allocates overhead costs with the department approach. Expected total overhead costs $900,000 Expected overhead costs in cutting and shaping $300,000 Expected overhead
Al's Wooden Turnings allocates overhead costs with the department approach. Expected total overhead costs $900,000 Expected overhead costs in cutting and shaping $300,000 Expected overhead costs in finishing and packaging $600,000 Total expected annual direct labor costs $200,000 Expected machine hours (for cutting and shaping) 25,000 Expected direct labor hours (for finishing and packaging) 50,000 Calculate the rate used by each department to allocate overhead costs. ite--10: O a. Cutting and shaping: $6.00 per direct labor hour; finishing and packaging: $6.00 per direct machine hour O b. Cutting and shaping: $36.00 per machine hour; finishing and packaging $18.00 per direct labor hour c. Cutting and shaping: $12.00 per machine hour; finishing and packaging $12.00 per direct labor hour d. Cutting and shaping: $18.00 per direct labor hour; finishing and packaging $36.00 per direct machine hour
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