Answer :
When calculating the departmental overhead rate, the numerator should be the total budgeted overhead cost. This cost represents the total expected overhead expenses for the department and is used as the basis for determining how much overhead should be allocated to each direct labor hour or machine hour used in production.
In the context of Tasty Bakery, as provided:
- The total budgeted overhead cost is $500,000.
Given this information, the correct detail for the numerator in calculating the departmental overhead rate is:
The total budgeted overhead cost.
In the context of Tasty Bakery, as provided:
- The total budgeted overhead cost is $500,000.
Given this information, the correct detail for the numerator in calculating the departmental overhead rate is:
The total budgeted overhead cost.