Blast Rocket Company Manufactures Candy-Coated Popcorn Treats That Go Through

Essay

Blast Rocket Company manufactures candy-coated popcorn treats that go through two operations, popping and baking, before they are complete. Expected costs and activities for the two departments are shown in the following table:
$$\begin{array} { | l | l | l | } \hline & \text { Popping } & \text { Baking } \\\hline \text { Direct labor hours } & 238,000 \mathrm { DLH } & 50,000 \mathrm { DLH } \\\hline \text { Machine hours } & 25,000 \mathrm { MH } & 141,500 \mathrm { MH } \\\hline \text { Overhead costs } & \$ 357,000 & \$ 452,800 \\\hline\end{array}$$ a. Compute a departmental overhead rate for the popping department based on direct labor hours.
b. Compute a departmental overhead rate for the baking department based on machine hours.