Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. big trail running company has started to produce r

Big Trail Running Company has started to produce running apparel in addition to the trail...

60.1K

Verified Solution

Question

Accounting

image

Big Trail Running Company has started to produce running apparel in addition to the trail running shoes that they have manufactured for years. They feel that a departmental overhead rate would best reflect their overall manufacturing overhead usage. Based on research the following information was gathered for the upcoming year: Machining Department $800,000 Finishing Department $200,000 Estimated Manufacturing Overhead by Department Trail Running Shoes Running Apparel 60,000 machine hours 40,000 machine hours 18,000 direct labor hours 62,000 direct labor hours Manufacturing overhead is driven by machine hours for the machining department and direct labor hours for the finishing department. Based on this information, what is the departmental manufacturing overhead rate for the machining and finishing department, respectively? (Round any intermediary calculations and your final answer to the nearest cent.) O A. $13.33 per machine hour and $3.23 per direct labor hour OB. $20.00 per machine hour and $11.11 per direct labor hour OC. $10.00 per machine hour and $12.50 per direct labor hour OD. $8.00 per machine hour and $2.50 per direct labor hour

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students