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Amazon allocates overhead for Dept A (22,000 machine hours, $700,000) and Dept B (18,000 labor hours, $550,000). Requirements: Determine the overhead allocation rate for each

  1. Amazon allocates overhead for Dept A (22,000 machine hours, $700,000) and Dept B (18,000 labor hours, $550,000).
    • Requirements:
      • Determine the overhead allocation rate for each department.
      • Allocate overhead costs to a product using departmental rates.
      • Prepare a cost report for the product.
      • Evaluate the impact of departmental rates on product pricing.

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