Ask Question
6 September, 02:18

The Laramie factory runs two departments: the Preparation Department and the Processing Department. The departmental overhead cost pool for the Preparation Department was $25,000 and was $20,000 for the Processing Department. The total amount of departmental allocation base was 400 DL hours in the Preparation Department and 600 DL hours in the Processing Department. What is the estimated departmental overhead cost pool for each department?

+4
Answers (1)
  1. 6 September, 03:44
    0
    The answer are:

    $62.50 per direct labor hour - for preparation department $33.33 per direct labor hour - for processing department

    Explanation:

    To calculate the departmental overhead cost per direct labor hour we must divide the total overhead cost over the total amount of direct labor hours.

    Preparation department: $25,000 / 400 DLH = $62.50 per DLH

    Processing department: $20,000 / 600 DLH = $33.33 per DLH
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The Laramie factory runs two departments: the Preparation Department and the Processing Department. The departmental overhead cost pool for ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers