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BizApp is a software development company that writes specialized programs for businesses. The founder and...

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Accounting

BizApp is a software development company that writes specialized programs for businesses. The
founder and owner, John Sprat, rust the business on a "bare bones" philosophy, by reducing or
eliminating unneeded activities in the company. As such, BizApp has only two departments (both
of them classified as production departments): Design and Production.
Budgeted yearling information for these departments is as follows:
Design: 800 square feet; 6,0oo direct labor hours, at $35? hour
Production: 1,600 square feet, 4,000 direct labor hours, at $24? hour
BizApp budgeted for the following overhead costs this year:
Rent and utilities are allocated to each department based on square footage, and other overhead
costs are allocated based on direct labor hours. Design and Production overhead costs are
allocated to jobs based on direct labor hours.
Required: (10 points) Calculate the rate used to apply overhead to jobs in the Design
department and in the Production department (do not round intermediate calculations; round
final answer to 2 decimal places).
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