Calculate the departmental overhead rate

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Reference no: EM13827376

Handy Display Company manufactures display cases to be sold to retail stores. The cases come in three sizes: large, medium, and small. Currently, Handy Display Company uses a single plant-wide overhead rate to allocate its $3,357,800 of annual manufacturing overhead. Of this amount, $900,000 is associated with the Large Case line, $1,404,480 is associated with the Medium Case line, and $1,350,000 is associated with the Small Case line. Handy Display Company is currently running a total of 39,600 machine hours: 12,000 in the Large Case line, 15,960 in the Medium Case line, and 12,000 in the Small Case line. Handy Display Company uses machine hours as the cost driver for manufacturing overhead costs

Requirement: Calculate the departmental overhead rate for each of the three departments listed show work

Reference no: EM13827376

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