Task: Rope Company has two departments: Machining and Assembly. The following estimates are for the company year:
Machining Assembly
Direct Labor hours 10,000 50,000
Machine hours 40,000 20,000
Support costs 200,000 400,000
1) A single predetermined cost driver rate based on total plant direct labor hours is which of the following based on the above information
$8 per direct labor hour, $10 per direct labor hour, $20 per direct labor hour, or none of these
2) A predetemined cost driver rate for the Machining department based on the number of machine hours in that department is based on the above info
$5 per machine hour, $10 per machine hour, $20 paer machine hour, or none of these