Question
Bronzit Company estimated the following at the beginning of the year: Assembly Department Testing Department Total Overhead $700,000 $100,000 $800,000 Direct Labor Hours 150,500 40,500
Bronzit Company estimated the following at the beginning of the year:
Assembly Department
Testing Department
Total
Overhead
$700,000
$100,000
$800,000
Direct Labor Hours
150,500
40,500
191,000
Machine Hours
37,000
72,000
109,000
Bronzit uses departmental overhead rates. In the assembly department, direct labor hours are used to apply overhead. Machine hours are used to apply overhead in the testing department.
Actual data for the month of May is as follows:
Assembly Department
Testing Department
Total
Overhead
$50,000
$11,000
$61,000
Direct Labor Hours
20,000
2,500
22,500
Machine Hours
3,500
14,000
17,500
Bronzit decides to continue using departmental overhead rates. What are the predetermined rates for the Assembly and Testing departments respectively? (Note: Round to two decimal places.)
a.Assembly: $5.25 per direct labor hour; Testing: $7.33 per machine hour
b.Assembly: $4.65 per direct labor hour; Testing: $1.39 per machine hour
c.Assembly: $2.23 per direct labor hour; Testing: $6.15 per direct labor hour
d.Assembly: $5.12 per machine hour; Testing: $7.22 per machine hour
e.None of these.
10 points
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started