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The Coca-Cola Company allocates its overhead costs to three production departments: Bottling, Packaging, and Distribution. The total overhead costs for the period are $2,000,000. The

The Coca-Cola Company allocates its overhead costs to three production departments: Bottling, Packaging, and Distribution. The total overhead costs for the period are $2,000,000. The allocation bases and usage for each department are as follows:

Department

Allocation Base

Usage

Bottling

Machine Hours

10,000

Packaging

Direct Labor Hours

15,000

Distribution

Miles Traveled

50,000 miles

Calculate the overhead allocation rate for each department and discuss how these rates reflect the utilization of resources in each department.

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