Budgeted costs for Support Department

Total fixed costs per year = $600,000

Variable costs = $24 per technician hour (TH)

Budgeted usage hours in TH

Production Dept A = 16,000 TH

Production Dept B = 14,000 TH

Actual usage hours in TH

Production Dept A = 18,000 TH

Production Dept B = 10,000 TH

Required:

Assume that the company uses normal costing. Show all workings. Round all answers to the nearest dollar.

Calculate, using the dual rate method:

the amount of total OH allocated to Production Dept A. Assume actual TH is used to allocate the variable cost and budgeted TH is used to allocate fixed cost.