Question: Direct labor hours Direct labor cost Machine hours Overhead Machining 16,000 $ 20,000 5,000 $ 25,000 Assembly 12,000 $ 15,000 1,000 $ 30,000 Assuming

Direct labor hours Direct labor cost Machine hours Overhead Machining 16,000 $20,000 5,000 $ 25,000 Assembly 12,000 $ 15,000 1,000 $ 30,000 Assumingthat overhead in the machining department is allocated on the basis ofmachine hours, the departmental overhead rate per unit of the allocation base

Direct labor hours Direct labor cost Machine hours Overhead Machining 16,000 $ 20,000 5,000 $ 25,000 Assembly 12,000 $ 15,000 1,000 $ 30,000 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: $15 $5 O $1.56 $30

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