Chapter 17, Problem 5QS

Computing departmental overhead rates P2

Refer to the information in QS 17-4. 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?

QS 17-4 Computing Plant wide overhead rates P1

Rafner Manufacturing identified the following budgeted data in its two production departments.

	Assembly	Finishing
Manufacturing overhead costs……………………………	$1,200.000	$600,000
Direct labor hours………………………………………………	12,000 DLH	20,000 DLH
Machine hours…………………………………………………..	6,000	16,000

What is the company’s single plant wide overhead rate based on direct labor hours?

What is the company’s single plant wide overhead rate based on machine hours? ( Round your answer to two decimal places.)