Archid, a Manufacturer of Spare Parts, Has Two Production Departments

Multiple Choice

Archid, a manufacturer of spare parts, has two production departments: Assembling and Packaging. The Assembling department is machine oriented, while the Packaging department is labor oriented. Estimated manufacturing overhead costs for the year 2015 were $15,000,000 for Assembling and $10,000,000 for Packaging. Calculate departmental wide allocation rates if total estimated machine hours were 30,000 and labor hours were 20,000 for the year.

A) $250, $300
B) $500, $500
C) $300, $300
D) $450, $540