Question 2 Lano Limited has decided to move from a factory-wide to a departmental overhead allocation policy with the overhead allocation base to be the dominant activity in that department. It has three departments, Prep, Casting and Finishing. You are given the following information: Expected Overheads Machine hours Labour Hours Prep 1,200,000 6,000 6785 Casting 560,000 5,690 3,000 Finishing 890,000 4,000 8,000 Based on this information, what will the overhead allocation rate for the Prep department be? Round your answer to the nearest whole number.

Question 2 Lano Limited has decided to move from a factory-wide to a departmental overhead allocation policy with the overhead allocation base to be the dominant activity in that department. It has three departments, Prep, Casting and Finishing. You are given the following information: Expected Overheads Machine hours Labour Hours Prep 1,200,000 6,000 6785 Casting 560,000 5,690 3,000 Finishing 890,000 4,000 8,000 Based on this information, what will the overhead allocation rate for the Prep department be? Round your answer to the nearest whole number.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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