David manufactures snowboards for aspiring Olympic athletes and estimates the following: Designing Drilling Department Department Total...

Transcribed Image Text:

David manufactures snowboards for aspiring Olympic athletes and estimates the following: Designing Drilling Department Department Total Overhead $ 78,000 $ 72,000 $150,000 Direct labour hours 6,000 1,600 7,600 Machine hours 12,500 16,000 28,500 David uses departmental overhead rates for his business. In the Designing Department, overhead is applied on the basis of direct labour hours In the Drilling Department, overhead is applied on the basis of machine hours. Actual data for the month of June is as follows: Designing Drilling Department Department Total Overhead $ 48,700 $ 60,200 $108,900 Direct labour hours 3,600 2,200 5,800 Machine hours 10,200 14,000 24,200 Use the above information to answer the following questions. David manufactures snowboards for aspiring Olympic athletes and estimates the following: Designing Drilling Department Department Total Overhead $ 78,000 $ 72,000 $150,000 Direct labour hours 6,000 1,600 7,600 Machine hours 12,500 16,000 28,500 David uses departmental overhead rates for his business. In the Designing Department, overhead is applied on the basis of direct labour hours In the Drilling Department, overhead is applied on the basis of machine hours. Actual data for the month of June is as follows: Designing Drilling Department Department Total Overhead $ 48,700 $ 60,200 $108,900 Direct labour hours 3,600 2,200 5,800 Machine hours 10,200 14,000 24,200 Use the above information to answer the following questions.