Aurora Corporation Produces Outdoor Security Lighting Products

Multiple Choice

Aurora Corporation produces outdoor security lighting products. All products go through three processes before completion. Use the expected overhead costs and related data shown below to compute departmental overhead rates based on machine hours in Department A1A; based on direct labor hours in Department B2B; and machine hours in Department C3C.

A) Dept. A: $10 per MH; Dept B: $2 per DLH; Dept C: $4 per MH.
B) Dept. A: $6 per MH; Dept B: $5 per DLH; Dept C: $3 per MH.
C) Dept. A: $10 per MH; Dept B: $5 per DLH; Dept C: $4 per MH.
D) Dept. A: $6 per MH; Dept B: $5 per DLH; Dept C: $4 per MH.
E) Dept. A: $10 per MH; Dept B: $2 per DLH; Dept C: $3 per MH.