Milford Industries provides medical equipment oncology and surgical units major hospitals. Les indirect costs to five departments and redistributes the IDC for Quality Assurance and Engineering to the other three departments monthly. The table summarizes IDC allocation and direct labor (DL) hours for one month. Department Production Subassemblies IDC Allocation, $ 30,000 20,000 10,000 11,000 22,500 etermine the indirect cost rate. Actual DL Hours 375 875 475 Final assembly Quality assurance Engineering NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part.
Milford Industries provides medical equipment oncology and surgical units major hospitals. Les indirect costs to five departments and redistributes the IDC for Quality Assurance and Engineering to the other three departments monthly. The table summarizes IDC allocation and direct labor (DL) hours for one month. Department Production Subassemblies IDC Allocation, $ 30,000 20,000 10,000 11,000 22,500 etermine the indirect cost rate. Actual DL Hours 375 875 475 Final assembly Quality assurance Engineering NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Milford Industries provides medical equipment to oncology and surgical units in major hospitals. Milford allocates indirect
costs to five departments and redistributes the IDC for Quality Assurance and Engineering to the other three departments
monthly. The table summarizes IDC allocation and direct labor (DL) hours for one month.
Department
Production
Subassemblies
IDC Allocation, $
30,000
20,000
Final assembly
10,000
Quality assurance
11,000
Engineering
22,500
NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part.
Determine the indirect cost rate.
The indirect cost rate is $
Actual DL Hours
375
875
475
54 per hour.
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