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A Company Produces Surgical Equipment That Goes Through Threes Processes,1A1,2B2,and

Question 34

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A company produces surgical equipment that goes through threes processes,1A1,2B2,and 3C3,before they are complete.Expected costs and activities for the three departments are shown below.All departments have departmental overhead rates based on direct labor hours.Therefore,the overhead rate for each department is $5 per direct labor hour.
 Department  Department  Department 1A12B23C3 Machine hours 15,000MH25,000MH20,000MH Direct labor hours 22,830DLH10,650DLH29,200DLH Overhead costs $114,150$213,000$73,000\begin{array} { l c c c } & \text { Department } & \text { Department } & \text { Department } \\& 1 \mathrm { A1 } & 2 \mathrm { B2 } & 3 \mathrm { C3 } \\\text { Machine hours } & 15,000 \mathrm { MH } & 25,000 \mathrm { MH } & 20,000 \mathrm { MH } \\\text { Direct labor hours } & 22,830 \mathrm { DLH } & 10,650 \mathrm { DLH } & 29,200 \mathrm { DLH } \\\text { Overhead costs } & \$ 114,150 & \$ 213,000 & \$ 73,000\end{array}

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