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Pokemon company has two producing departments: machining and finishing. The company has been using a...

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Accounting

Pokemon company has two producing departments: machining and finishing. The company has been using a plant-wide predetermined overhead rate based on direct labor cost. The following estimates were made for the current year

MACHINING FINISHING TOTAL

Manufacturing overhead

$140,000

$60,000

$200,000

Direct labor cost

$100,000

$300,000

$400,000

Machine hours

10,000

5,000

15,000

a. What is budgeted factory overhead rate based on direct labor cost.

b. Calculate separate departmental overhead rates based upon direct labor cost for assembly and machine hours for finishing.

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