Question
ShipShape company makes 2 different types of boats, commercial fishing and sail boats both for recreation and competition. The company consists of 2 different departments,
ShipShape company makes 2 different types of boats, commercial fishing and sail boats both for recreation and competition. The company consists of 2 different departments, design and engineering, and production. The company has decided to allocate overhead costs in each of the two costs pools. Data on estimated ovhead follows:
Production
| Product design | # of design | 22 designs | 18 designs | |
| Production | labor hours | 4000 hrs | 3500 hrs |
What overhead rate will be used in each department?
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ISE Fundamental Managerial Accounting Concepts
Authors: Thomas Edmonds, Christopher Edmonds, Mark Edmonds, Philip Olds
9th Edition
1260565483, 9781260565485
