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 10,000 8,500 26,000 mine the indirect cost rate. Actual DL Hours 550 1050 650 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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
10,000
8.500
26,000
NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part.
Final assembly
Quality assurance
Engineering
Determine the indirect cost rate.
The indirect cost rate is $
Actual DL Hours
550
1050
650
42 per hour.
Transcribed Image Text:Required information 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 10,000 8.500 26,000 NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. Final assembly Quality assurance Engineering Determine the indirect cost rate. The indirect cost rate is $ Actual DL Hours 550 1050 650 42 per hour.
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