The MoonStar Corporation uses a “predetermined overhead rate”to apply manufacturing overhead costs the each department....

The MoonStar Corporation uses a “predetermined overhead rate” to apply manufacturing overhead costs the each department. For the Department A, the company uses “labor cost” as allocation base and for the Department B, uses “machine-hours” as allocation base.

At the beginning of the year, the Corporation made the following estimates:

	Dept. A	Dept. B
Direct labor cost	$60,000	$40,000
Manufacturing overhead	$90,000	$45,000
Direct labor-hours	6,000	9,000
Machine-hours	2,000	15,000

Question: Please compute the “predetermined overhead rates” for Dept. A and for Dept. B

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ekkarill92 answered 1 year ago

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