Answers:

a. $4.00

b. $5.50

c. $5.00

d. $4.50

12 Assume a company started and completed numerous jobs during July-two of which were Job Y and Job Z. The company uses two departmental predetermined overhead rates. The rate in the Machining Department is based on machine-hours and the rate in the Assembly Department is based on direct labor-hours. The following additional information from the month of July is available for the company as a whole and for Jobs Y and Z: Machining $48,000 $ 1.50 Assembly $30,000 Skipped Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour Estimated variable manufacturing overhead per direct labor-hour Estimated total machine-hours to be used Estimated total direct labor hours to be worked $ 2.00 12,000 10,000 Machining Assembly 50 30 Job Y Machine-hours Direct labor-hours Job z Machine-hours Direct labor-hours 40 60 What is the predetermined overhead rate in the Machining Department