Question

Laramie produces two products: Basic and Deluxe. The plant’s overhead for January was $45,000 and the plant used 600 direct labor (DL) hours. The factory has two departments: Preparation and Processing. The Preparation Department incurred $25,000 of overhead and used 400 DL hours. In the Processing Department, $20,000 of manufacturing overhead was incurred and 160 DL hours were used. During January, 300 DL hours were used by the Basic model and 300 DL hours were used by the Deluxe model to make 100 units of each. What is Laramie departmental overhead rates based on DL hours (DLH)?

Answer 1

The answer would be