A Company Produces Surgical Equipment Which Goes Through Threes Processes

True/False

A company produces surgical equipment which 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.
$$\begin{array} { l c c c } & \text { Department } & \text { Department } & \text { Department } \\& 1 \mathrm {~A} 1 & 2 \mathrm {~B} 2 & 3 \mathrm { C } 3 \\\text { Machine hours } & 15,000 \mathrm { MH } & 25,000 \mathrm { MH } & 20,000 \mathrm { MH } \\\text { Direct labor hours } & 22,830 \mathrm { DLH } & 10,650 \mathrm { DLH } & 29,200 \mathrm { DLH } \\\text { Overhead costs } & \$ 114,150 & \$ 213,000 & \$ 73,000\end{array}$$