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A company produces garden benches that go through two operations, operation 1A1 and operation 2B2,...

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Accounting

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A company produces garden benches that go through two operations, operation 1A1 and operation 2B2, before they are complete. Expected costs and activities for the two departments are shown below. Both departments have departmental overhead rates based on machine hours. Therefore, the overhead rates for department 1A1 and department 2B2 are the same. Machine hours Direct labor hours Overhead costs Department 141 Department 2B2 70,000 MH 60,000 MH 56,350 DLH 50, 160 DLH $225,400 $250,800 True or False True False

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