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q2-1 Luster, LLC uses a single, plant-wide overhead rate. The company has two departments, fabrication and painting. Relevant data is below. Fabrication department: $12,000 fixed
q2-1
Luster, LLC uses a single, plant-wide overhead rate. The company has two departments, fabrication and painting. Relevant data is below. Fabrication department: $12,000 fixed overhead, variable overhead $18 per labor hour Painting department: $28,000 fixed overhead, variable $9 per machine hour The company estimated the following hours: Fabrication department: 900 labor hours and 1,000 machine hours Painting department: 1,200 labor hours and 300 machine hours The single, plant-wide overhead rate is based on labor hours. What is the overhead rate based on labor hours? \begin{tabular}{|l|} \hline$45.31 \\ \hline$28.05 \\ \hline$65.44 \\ $49.08 \\ \hline \end{tabular} Step by Step Solution
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