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A Company Produces Heating Elements That Go Through Two Operations,casting

Question 125

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A company produces heating elements that go through two operations,casting and assembling,before they are complete.Expected costs and activities for the two departments are shown below.Given this information,the departmental overhead rate for the assembling department based on direct labor hours is $5 per direct labor hour.
 Casting  Assembling  Direct labor hours 1,875DLH7,500DLH Machine hours 12,500MH3,750MH Overhead costs $75,000$37,500\begin{array} { l c c } & \text { Casting } & \text { Assembling } \\\text { Direct labor hours } & 1,875 \mathrm { DLH } & 7,500 \mathrm { DLH } \\\text { Machine hours } & 12,500 \mathrm { MH } & 3,750 \mathrm { MH } \\\text { Overhead costs } & \$ 75,000 & \$ 37,500\end{array}

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