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