Platinum Manufacturing Company has two service departments (Maintenance and Personnel) and two producing departments (x and Y). The Maintenance Department costs of 9.000 TL are allocated on the basis of maintenance hours. The Personnel Department costs of 18.000 TL are allocated on the basis of number of employees. The original overhead costs of Department X and Y are 36.000 TL and 60.000 TL, respectively. Data on maintenance hours, direct labor hours and number of employees are as follows: Maintenance hours Number of employees Direct labor hours Maintenance 18 Personnel 150 1.200 81 1.000 Y 600 81 500 What is the overhead rate based on direct labor hour for Department Y assuming sequential method used? a. 145,20 TL per direct labor hour O b. 144,30 TL per direct labor hour O c. 142,50 TL per direct labor hour d. 143,40 TL per direct labor hour e. 143,00 TL per direct labor hour

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 28E: Minor Co. has a job order cost system and applies overhead based on departmental rates. Service...
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Platinum Manufacturing Company has two service departments (Maintenance and Personnel) and two producing departments
(x and Y). The Maintenance Department costs of 9.000 TL are allocated on the basis of maintenance hours. The Personnel
Department costs of 18.000 TL are allocated on the basis of number of employees. The original overhead costs of Department X
and Y are 36.000 TL and 60.000 TL, respectively.
Data on maintenance hours, direct labor hours and number of employees are as follows:
Maintenance hours Number of employees Direct labor hours
Maintenance
18
Personnel
150
X
1.200
81
1.000
Y
600
81
500
What is the overhead rate based on direct labor hour for Department Y assuming sequential method used?
O a. 145,20 TL per direct labor hour
b. 144,30 TL per direct labor hour
c. 142,50 TL per direct labor hour
O d. 143,40 TL per direct labor hour
e. 143,00 TL per direct labor hour
Transcribed Image Text:Platinum Manufacturing Company has two service departments (Maintenance and Personnel) and two producing departments (x and Y). The Maintenance Department costs of 9.000 TL are allocated on the basis of maintenance hours. The Personnel Department costs of 18.000 TL are allocated on the basis of number of employees. The original overhead costs of Department X and Y are 36.000 TL and 60.000 TL, respectively. Data on maintenance hours, direct labor hours and number of employees are as follows: Maintenance hours Number of employees Direct labor hours Maintenance 18 Personnel 150 X 1.200 81 1.000 Y 600 81 500 What is the overhead rate based on direct labor hour for Department Y assuming sequential method used? O a. 145,20 TL per direct labor hour b. 144,30 TL per direct labor hour c. 142,50 TL per direct labor hour O d. 143,40 TL per direct labor hour e. 143,00 TL per direct labor hour
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