Summary BUS 599 Grading Rubric – Assignment Auerbach Enterprises – Complete Case 3A in Chapter 3

Table 1 Computation of Departmental overhead rates using machine hours method : Department                                      Overhead cost     Machine Hour     Rate Radiator parts fabrication                          80,000                        10,000        8 Radiator Assembly, weld and test   100,000                        20,000        5 Compressor parts fabrication          120,000                        5,000                  24 Compressor assembly and test                  180,000                        45,000        4  Conclusion : The department wise rate depends upon the overhead cost and the No. o