Aurora Corporation produces outdoor security lighting products. All products go through three processes before completion. Use the expected overhead costs and related data shown below to compute departmental overhead rates based on machine hours in Department A1A; based on direct labor hours in Department B2B; and machine hours in Department C3C. Department A1ADepartment B2BDepartment C3CDirect labor hours 90,000DLH 80,000DLH 72,000DLHMachine hours 54,000MH 32,000MH 54,000MHManufacturing overhead costs$540,000 $160,000 $216,000
A. Dept. A: $10 per MH; Dept B: $5 per DLH; Dept C: $4 per MH.
B. Dept. A: $10 per MH; Dept B: $2 per DLH; Dept C: $3 per MH.
C. Dept. A: $10 per MH; Dept B: $2 per DLH; Dept C: $4 per MH.
D. Dept. A: $6 per MH; Dept B: $5 per DLH; Dept C: $4 per MH.
E. Dept. A: $6 per MH; Dept B: $5 per DLH; Dept C: $3 per MH.
Answer: C
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