Departmental allocation of overheadThe firm is considering a switch to departmental rates for MOH.XYZ will use machine hours (MH) to allocate Assembly Dept. costs. Of the $2,430,000 of MOH, the firm determined that $1,620,000 is related to the Assembly Dept. and $810,000 is related to the Packaging Dept.• Basic units6,000 MH in Assembly• Deluxe units 30,000 MH in Assembly• Total 36,000 MH in Assemblya) Assembly dept. allocation rate = Assembly dept. MOH allocated to Basic = Assembly dept. MOH allocated to Deluxe= XYZ will use labor dollars (DL$) to allocate Packaging Dept. costs• Basic units $990,000 DL$ in Packaging• Deluxe units $360,000 DL$ in Packaging• Total$1,350,000 DL$ in Packagingb) Packaging dept. allocation rate = Packaging dept. MOH allocated to Basic = Packaging dept. MOH allocated to Deluxe = c) Total cost for Basic = Total cost for Deluxe = d) Cost/unit for Basic = Cost/unit for Deluxe =
