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A business produces sports equipment according to special customer requests. The business has 3 manufacturing departments: Pr

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Answer #1

a.

Overhead absorption rate in preparation department = Overheads in preparation department / Direct labor hour in preparation department

= 156,000/6,000

= $26 per direct labor hours

b.

Overhead absorption rate in assembly department = Assembly department overheads/ machine hours is assembly department

= 322,400/6,200

= 52 per machine hours

c.

Overhead absorption rate in packing department = Packing department overheads / Direct labor hours in packing department

= 95,000/5,000

= $19 per direct labor hours

Kindly comment if you need further assistance. Thanks‼!

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