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Help Save Bearkat Corporation has two production departments, Welding and Painting, and two service departments, Accounting and Human Resources. Bearkat uses the direct method and
Help Save Bearkat Corporation has two production departments, Welding and Painting, and two service departments, Accounting and Human Resources. Bearkat uses the direct method and has the following cost drivers and cost information for their operations Departments Welding Painting Accounting Human Resources Overhead Costs 60.000 130,000 6000 93,000 Cost Drivers Direct labor (DL) hours Machine hours Dollar value of assets Number of employees The department with the highest cost is allocated first. The cost driver usage data was: Welding Painting Accounting Human Resources 0 6.000 9,200 4,000 36,800 0 0 0 DL hours Machine hours Asset dollar value Employees 147,000 49.000 588.000 196.000 11 11 132 66 The predetermined overhead rate associated with the Painting department is closest to do not round fractions percentages, round unit costs to two decimal places places) O $2.17 (0) $5.70 $4.38 $4.86 O SB.53
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