Question
Deca Electronics Company produces two products, Resistors and Transistors in a small manufacturing plant which had total manufacturing overhead of $21,000 in June. The factory
Deca Electronics Company produces two products, Resistors and Transistors in a small manufacturing plant which had total manufacturing overhead of $21,000 in June. The factory has two departments, Design, which incurred $10,000 of manufacturing overhead, and Production which incurred $11,000 of manufacturing overhead. Design used 200 hours of direct labor and Production used 80 machine hours.
During June, 150 direct labor hours were used in making 100 units of Resistors, and 150 direct labor hours were used in making 100 units of Transistors.
If Deca Electronics Company uses a department rate based on direct labor hours for the Design Department and machine hours for the Production Department, the department overhead rates for the Design and Production Departments in June were:
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