question 23 3.13 pts assuming that overhead in the machining department is allocated on the basis of machine…

question 23 3.13 pts assuming that overhead in the machining department is allocated on the basis of machine hours, the departmental overhead rate per unit of the allocation base in the machining department is: machining assembly direct labor hours 16,000 12,000 direct labor cost $ 20,000 $ 15,000 machine hours 5,000 1,000 overhead $ 25,000 $ 30,000 a. $15 b. $5 c. $1.56 d. $30

question 23 3.13 pts assuming that overhead in the machining department is allocated on the basis of machine hours, the departmental overhead rate per unit of the allocation base in the machining department is: machining assembly direct labor hours 16,000 12,000 direct labor cost $ 20,000 $ 15,000 machine hours 5,000 1,000 overhead $ 25,000 $ 30,000 a. $15 b. $5 c. $1.56 d. $30

Answer

Explanation:

Step1: Identify formula for overhead rate

Overhead rate per machine - hour = Total departmental overhead / Total machine - hours

Step2: Determine values for machining department

For the machining department, total overhead = $25,000 and total machine - hours = 5,000

Step3: Calculate overhead rate

Overhead rate = $\frac{25000}{5000}= 5$

Answer:

B. $5