Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Off the Beaten Path Running Company has started to produce running apparel in addition to the trail running shoes that they have manufactured for

image text in transcribed

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Karen Wilken Braun, Wendy Tietz, Walter Harrison, Rhonda Pyp

1st Canadian Edition

978-0132490252, 132490250, 978-0176223311

More Books

Students also viewed these Accounting questions