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Lamar Corporation Uses Departmental Manufacturing Overhead Rates to Apply Overhead

Question 142

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Lamar Corporation uses departmental manufacturing overhead rates to apply overhead. Direct labor cost is used to apply manufacturing overhead in Department A and machine hours are used for Department B. Lamar Corporation uses departmental manufacturing overhead rates to apply overhead. Direct labor cost is used to apply manufacturing overhead in Department A and machine hours are used for Department B.   What predetermined overhead rate would be used for departments A and B respectively? A)  83%; $5 B)  83%; $3 C)  120%; $4 D)  $8.40; $5 What predetermined overhead rate would be used for departments A and B respectively?


A) 83%; $5
B) 83%; $3
C) 120%; $4
D) $8.40; $5

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