Roddickton manufacturing co. has gathered the following information to develop predetermined overhead rates for 2010. the company produces a wide variety of energy-saving products that processed through two departments, assembly (automated) and finishing (labor intensive).
- budgeted total overhead: $600,400 in assembly and $199,600 in finishing
- budgeted total direct labor hours: 10,000 in assembly and 40,000 in finishing
- budgeted total machine hours: 76,000 in assembly and 4,000 in finishing
a. compute a plantwide predetermined Overhead rate using direct labor hours.