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Archid Inc

Question 52

Multiple Choice

Archid Inc.,a manufacturer of spare parts,has two production departments-Assembling and Packaging.The Assembling department is mechanized,while the Packaging department is labor-oriented.Estimated manufacturing overheads for the year 2015 were $15,000,000 for Assembling and $10,000,000 for Packaging.Calculate the department-wide allocation rates if the 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

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