Gamma Manufacturing Ltd. has two production departments, A and B, with the following distributed production overheads: Dept. A: $15,000 Dept. B: $8,000 Dept. A consumes 6,000 labor hours, while Dept. B consumes 4,500 labor hours. Assuming labor hours as the allocation base, what is the overhead rate for Dept. A?

Gamma Manufacturing Ltd. has two production departments, A and B, with the following distributed production overheads: Dept. A: $15,000 Dept. B: $8,000 Dept. A consumes 6,000 labor hours, while Dept. B consumes 4,500 labor hours. Assuming labor hours as the allocation base, what is the overhead rate for Dept. A?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 3CE: Lansing. Inc., provided the following data for its two producing departments: Machine hours are used...

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