Question
Handy Display Company manufactures display cases to be sold to retail stores. The cases come in three sizes: large, medium, and small. Currently, Handy Display
Handy Display Company manufactures display cases to be sold to retail stores. The cases come in three sizes: large, medium, and small. Currently, Handy Display Company uses a single plant-wide overhead rate to allocate its $3,357,800 of annual manufacturing overhead. Of this amount, $1,000,000 is associated with the Large Case line, $1,560,000 is associated with the Medium Case line, and $1,485,000 is associated with the Small Case line. Handy Display Company is currently running a total of 50,000 machine hours: 20,000 in the Large Case line, 24,000 in the Medium Case line, and 15,000 in the Small Case line. Handy Display Company uses machine hours as the cost driver for manufacturing overhead costs.
Requirement: Calculate the departmental overhead rate for each of the three departments listed
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