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Departmental Overhead Allocation The below table shows how Aladin company incurs overhead cost to produce product A and B over the next year. The company
Departmental Overhead Allocation The below table shows how Aladin company incurs overhead cost to produce product A and B over the next year. The company has two departments, 1 and 2, to support the production. Department 1 is labor-intensive while department 2 takes a lot of computer processing. Department 1 Product A Product B DLH 400 600 DCH 30 Budgeted dept cost $12,000 DLH =direct labor hour, DCH = direct computer hour Department 2 Product A Product B 100 100 150 450 $18,000 50 1. Suppose that the company allocates overhead cost based on DLH under the plant-wide costing system. Determine the POHR under this system. 2. The overhead cost allocated to product A by using the plant-wide costing system would be: 3. The POHR for Department 1 under departmental cost allocation system would be: 4. The overhead cost allocated to product A by using departmental cost allocation system would be
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