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:?PoppingBakingDirect labor hours238,000 DLH50,000 DLHMachine hours25,000 MH141,500 MHOverhead costs$357,000$452,800a. 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.

What will be an ideal response?


a. $357,000/238,000 DLH = $1.50 per DLH
b. $452,800/141,500 MH = $3.20 per MH

Business

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