Chapter 4, Problem 7E

Exercise 17-5 Departmental overhead rates P2

Refer to the information in Exercise 17-4

Required

1. Compute a departmental overhead rate for the molding department based on machine hours and a department overhead rate for the trimming department based on direct labor hours.
2. Determine the total overhead cost assigned to each product line using the department overhead rates from required 2.
3. Determine the overhead cost per unit for each product line using the department rate.