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

  1. 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 2 years ago
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