141) Krepes Manufacturing has two departments that produce small appliances. The Drilling Department allocates manufacturing overhead using machine hours as the allocation base while the Cutting Department allocates manufacturing overhead using direct labor cost as the allocation base. Data for April are shown below:

 

Drilling

Dept.

 

Cutting Dept.

Estimated annual manufacturing overhead costs

$150,000

$300,000

Estimated annual direct labor cost

$60,000

$600,000

Estimated annual machine hours

40,000

10,000

Actual manufacturing overhead costs for April

$10,000

$14,000

Actual direct labor cost for April

$4,200

$34,000

Actual machine hours for April

2,500

1,000

a) Determine the predetermined manufacturing overhead rate for the Drilling Department.

b) Determine the predetermined manufacturing overhead rate for the Cutting Department.

c) Determine the balances of the manufacturing overhead accounts for each department as of April 30. In



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