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Off the Beaten Path Running Company has started to produce running apparel in addition to the trail running shoes that they have manufactured for
Off the Beaten Path Running Company has started to produce running apparel in addition to the trail running shoes that they have manufactured for years. They feel that a departmental overh rate would best reflect their overall manufacturing overhead usage. Based on research the following information was gathered for the upcoming year Estimated Manufacturing Overhead $700,000 by Department Trail Running Shoes Running Apparel Machining Department 320,000 machine hours 80,000 machine hours Finishing Department $300,000 16,000 direct labor hours 64,000 direct labor hours Manufacturing overhead is driven by machine hours for the machining department and direct labor hours for the finishing department. Based on this information, what is the departmental manufacturing overhead rate for the machining and finishing department, respectively? (Round any intermediary calculations and your final answer to the nearest cent.) A. $2.50 per machine hour and $12.50 per direct labor hour B. $1.75 per machine hour and $3.75 per direct labor hour OC. $2.19 per machine hour and $4.69 per direct labor hour COD. $8.75 per machine hour and $18.75 per direct labor hour
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