To compute the departmental overhead rates, divide the total overhead cost by the respective measurement. Multiply each departmental overhead rate by the appropriate measurement to calculate the overhead associated with model 789. Divide the total cost of producing model 789 by the number of units to find its per unit cost.
a. To compute the departmental overhead rate for department A based on machine hours, you need to divide the total overhead cost of department A by the total number of machine hours used by department A.
b. To calculate the overhead associated with model 789 from department A, you need to multiply the departmental overhead rate for department A by the number of machine hours used by model 789 from department A.
c. To compute the departmental overhead rate for department B based on direct labor hours, you need to divide the total overhead cost of department B by the total number of direct labor hours used by department B.
d. To calculate the overhead associated with model 789 from department B, you need to multiply the departmental overhead rate for department B by the number of direct labor hours used by model 789 from department B.
e. To compute the departmental overhead rate for department C based on machine hours, you need to divide the total overhead cost of department C by the total number of machine hours used by department C.
f. To calculate the overhead associated with model 789 from department C, you need to multiply the departmental overhead rate for department C by the number of machine hours used by model 789 from department C.
g. To find the per unit cost of the 550,000 units of model 789, you need to divide the total cost of producing model 789 by the number of units.