ShipShape company makes 2 different types of boats, commercial fishing and sail boats both for recreation...
ShipShape company makes 2 different types of boats, commercial fishing and sail boats both for recreation and competition. The company consists of 2 different departments, design and engineering, and production. The company has decided to allocate overhead costs in each of the two costs pools. Data on estimated ovhead follows:
Production
| Product design | # of design | $180,000 | 22 designs | 18 designs |
| Production | labor hours | $945,000 | 4000 hrs | 3500 hrs |
What overhead rate will be used in each department?
Design and engineering Prodution
A. 11,250/design $126/labor hr
B. 11250/design $150/labor hr
C. $4500/design $126/labor hr
D $4500/ design $150/labor h
Homework Answers
Option C would be the correct answer..Overhead Rates - $4500/ design and $126/labour hour. Image enclosed for details
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