Using the information in Exercise 6, charge general overhead on direct labor hours first; then re-total your overhead by department. Next, charge out the total overhead in a department using the following drivers: Prepping on batches made, Blending on machine hours used, and Boxing on number of boxes produced. What four rates do you get now? How much total overhead gets charged out in each department?

Data From Exercise 6

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Wholesome Oats Prepping Blending Boxing General Overhead Overhead $250,000 $600,000 $400,000 $750,000 Direct labor hours 10,000 NA NA 4,000 6,000 Machine hours 4,000 20,000 10,000 Batches made NA NA NA 800 800 Boxes packed NA NA 20,000,000