Rafner Manufacturing identified the following budgeted data in its two productio
ID: 2540436 • Letter: R
Question
Rafner Manufacturing identified the following budgeted data in its two production departments Assembly $1,146,300 Finishing 540,000 Manufacturing overhead costs Direct labor hours Machine hours 11,400 DLH 5,400 M 19,400 DLH 15,400 MH Required: What are the company's departmental overhead rates if the assembly department assigns overhead based on direct labor hours and the finishing department assigns overhead based on machine hours? e departmental overhead rate for Assembly The departmental overhead rate for FinishingExplanation / Answer
Departmental Overhead rate for Assembly = Estimated Overhead Cost / Estimated Direct labor hours
= $1,146,300 / 11,400
= $100.55
Departmental Overhead rate for Finishing = Estimated Overhead Cost / Estimated Machine hours
= $540,000 / 15,400
= $35.06
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