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PCApp is a software development company that writes specialized programs for businesses. The founder and owner runs the business efficiently, by reducing or eliminating unneeded
PCApp is a software development company that writes specialized programs for businesses. The founder and owner runs the business efficiently, by reducing or eliminating unneeded activities in the company. As such, PCApp has only two departments (both of them classified as production departments): Design and Production. Time left 1:58:3. Budgeted yearly information for these departments is as follows: Design: 800 square feet; 6,000 direct labor hours, at $35/hour Production: 1,600 square feet; 4,000 direct labor hours, at $25/hour PCApp budgeted for the following overhead costs this year: Rent Utilities Supplies Depreciation (of computer equipment) Manager salary $120,000 $24,000 $5,000 $6,000 $90,000 Rent and utilities are allocated to each department based on square footage, and other overhead costs are allocated based on direct labor hours. Design and Production overhead costs are allocated to jobs based on direct labor hours. What is the rate used to apply overhead to jobs in the Design department? In the Production department? (Do not round intermediate calculations; round the final answer to 2 decimal places.)
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