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The following information is available pertaining to the Production Division of Clarkson Enterprises: Assembly Dept. Finishing Dept. Total Overhead costs $7,500 $22,500 $30,000 Direct labor
The following information is available pertaining to the Production Division of Clarkson Enterprises:
Assembly Dept. | Finishing Dept. | Total | |
Overhead costs | $7,500 | $22,500 | $30,000 |
Direct labor hours | 7,500 | 2,500 | 10,000 |
Machine hours | 2,500 | 7,500 | 10,000 |
Production information pertaining to Job 4X5: | |||
Assembly Dept. | Finishing Dept. | Total | |
Prime costs | $1,250 | $0 | $1,250 |
Direct labor hours | 250 | 0 | 250 |
Machine hours | 0 | 0 | 0 |
Units produced | 500 | 0 | 500 |
What is the plantwide overhead rate based on direct labor hours?
a.$3.00
b.$1.50
c.$9.00
d.$1.00
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