Useful Tool Company Useful Tool Company Has Two Service Departments (General Factory and (General
Essay
Useful Tool Company
Useful Tool Company has two service departments (General Factory and Repair)and two operating departments (Fabrication and Assembly).Management has decided to allocate repair costs on the basis of the area (square feet)in each department and to allocate General Factory on the basis of labor hours worked by the employees in each of their respective departments.
The following data appear in the company records for the current period:
The company allocates the costs from the General Factory Department first.
Refer to the Useful Tool Company.Using machine hours as the base and the step method of allocation,what is the overhead rate for the Fabrication Department?
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