Heat Corporation manufactures precision equipment made to order for the
semiconductor industry. Heat uses two manufacturing overhead cost
pools one for the overhead costs incurred in its highly automated
Machining Department and another for overhead costs incurred in its labor
based Assembly Department. Heat uses a normal costing system. It
allocates Machining Department overhead costs to jobs based on actual
machine hours using a budgeted machinehour overhead rate. It allocates
Assembly Department overhead costs to jobs based on actual direct
manufacturing labor hours using a budgeted direct manufacturing labor
hour rate. The following data are for the year:
Requirement Compute the budgeted overhead rates for the year in the
Machining and Assembly Departments. Round your answers to the nearest whole
dollar.
The budgeted overhead rate for the year in the Machining Department is
$
The budgeted overhead rate for the year in the Assembly Department is
