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Calculator Bronzit Company estimated the following at the beginning of the year: Overhead Direct Labor Hours Machine Hours Assembly Department $700,000 150,500 hrs. 37,000 hrs.
Calculator Bronzit Company estimated the following at the beginning of the year: Overhead Direct Labor Hours Machine Hours Assembly Department $700,000 150,500 hrs. 37,000 hrs. Testing Department $100,000 40,500 hrs 72,000 hrs Total $800,000 191,000 hrs. 109,000 hrs. 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 $50,000 Testing Department $11,000 Overhead Direct Labor Hours Machine Hours Total $61.000 22,500 hrs. 17,500 hrs. 20.000 hrs 2.500 hrs. 3,500 hrs. 14,000 hrs. 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: $4.65 per direct labor hour; Testing: $1.39 per machine hour b. Assembly: $5.25 per direct labor hour; Testing: $7.33 per machine hour C. Assembly: $2.23 per direct labor hour; Testing: 56.15 per direct labor hour d. Assembly: $5.12 per machine hour: Testing: $7.22 per machine hour e. None of these choices are correct. GIS PM 0 04 12/9/2019 2
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