Figure 4-6 Cabrini Company Produces Two Products: Toy Trucks and Toy

Multiple Choice

Figure 4-6 Cabrini Company produces two products: toy trucks and toy cars.They use departmental overhead rates for the two production departments: molding and finishing.Molding uses machine hours to assign overhead and Finishing uses direct labor hours.50,000 trucks and 250,000 cars are produced.Please find the following data:

- Refer to Figure 4-6.What are the departmental overhead rates for the molding and finishing department respectively?

A) $25; $2.50
B) $8.33; $2
C) $25; $10
D) $12.50; $2.50