Question
M06 In Class Assignment Departmental Allocation Rate Chili from Chile has two departments, the meat department and the bean department. The meat department uses 150
M06 In Class Assignment Departmental Allocation Rate Chili from Chile has two departments, the meat department and the bean department. The meat department uses 150 direct labor hours, which is $3,000 direct labor dollars. the meat department uses 200 machine hours. The bean department uses 250 direct labor hours, which is $7,000 direct labor dollars. The bean department uses 500 machine hours. Total expected Factory Overhead (FOH) associated with the meat department is $60,000 Total expected Factory Overhead (FOH) associated with the bean department is $80,000
If the meat department allocates FOH based on Direct Labor Dollars, what is the allocation rate?
If the bean department allocates FOH based on Machine hours, what is the allocation rate?
If both departments allocate FOH based on Direct Labor Hours, what is the allocation rate for each?
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