Rafner manufacturing identified the following budgeted data in its two production departments.

assembly finishing manufacturing overhead costs $ 1,257,300 $ 660,000 direct labor hours 12,600 dlh 20,600 dlh machine hours 6,600 mh 16,600 mh

required:

what are the company's departmental overhead rates if the assembly department assigns overhead based on direct labor hours and the finishing department assigns overhead based on machine hours?

$99.78; $39.76

Explanation:

Assembly:

Manufacturing overhead costs = $1,257,300

Direct labor hours = 12,600 DLH

Machine hours = 6,600

Departmental Overhead rate for Assembly:

= Estimated Overhead Cost ÷ Estimated Direct labor hours

= $1,257,300 ÷ 12,600

= $99.78

Finishing:

Manufacturing overhead costs = $660,000

Direct labor hours = 20,600 DLH

Machine hours = 16,600

Departmental Overhead rate for Finishing:

= Estimated Overhead Cost ÷ Estimated Machine hours

= $660,000 ÷ 16,600

= $39.76

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