Question

Turtle Company produces t-shirts that go through two operations, cutting and sewing, before they are complete. Expected costs and activities for the two departments are shown below. Given this information, the departmental overhead rate for the cutting department based on direct labor hours is $2.69 per direct labor hour (rounded to two decimals).

Cutting Sewing
Direct labor hours 250,000 DLH 75,000 DLH
Machine hours 125,000 MH 150,000 MH
Overhead costs $500,000 $375,000

Answer

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