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:
Select one:
A. $62.50 per direct labor hour for Design, and $125 per machine hour for Production
B. $50 per direct labor hour for Design, and $137.50 per machine hour for Production
C. $125 per direct labor hour for Design, and $62.50 per machine hour for Production
D. $50 per direct labor hour for both Design and Production
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started