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At the beginning of the year, Grey Corporation estimated the following: Assembly Department Packaging Department Overhead $840,000 $210,000 Direct labor hours 4,000 hrs. 80,000 hrs.
At the beginning of the year, Grey Corporation estimated the following: Assembly Department Packaging Department Overhead $840,000 $210,000 Direct labor hours 4,000 hrs. 80,000 hrs. 20,000 hrs. Machine hours 12,000 hrs. Grey uses departmental overhead rates. In the assembly department, overhead is applied on the basis of direct labor hours. In the packaging department, overhead is applied on the basis of machine hours. Actual data for the month of April are as follows: Assembly Department $42,759 Overhead Direct labor hours Packaging Department $20,400 300 hrs. 1,200 hrs. 4,000 hrs. K Machine hours 1,000 hrs. Required: A. Calculate the predetermined overhead rates for the assembly and packaging departments. Round your answers to two decimal places. Assembly department overhead: Packaging department overhead: B. Calculate the overhead applied to production in each department for the month of April. Assembly department overhead: . , , overhead is applied on the basis of machine hours. Actual data for the month of April are as follows: Assembly Department Packaging Department Overhead $42,759 $20,400 Direct labor hours 4,000 hrs. 300 hrs. Machine hours 1,000 hrs. 1,200 hrs. Required: A. Calculate the predetermined overhead rates for the assembly and packaging departments. Round your answers to two decimal places.
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