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Exercise $1$ Oro Compary has two departments with the following production data. It has

historically used a single plant$-$wide averhead rate based on direct labor cost.

Manufacturing averhead costs $ Weiding Fabrication

Direct labor cost

Pirect labor hours

a$)$ Single Plant$-$Wide Overhead Rate

Compute departmental overhead rates. Assume weiding applies overhead using direct

labor hours and fabrication using machine hours.

b$)$ Departmertal Overhead Rate $-$ Welding

per DL hr

c$)$ Departmental Overhead Rate $-$ Fabrication

Estimated production data for the two products is as follows:

Calculate the following ABC overhead rates $($round to the penmy$).$

$\backslash$table$[[$Exercise $3,$ Use the information from exercise $2,$ but assume Loco uses a single plant$-$wide

Overhead rate based $on$ machine hours.