Question
Claybrooks Corporation has two manufacturing departments--Casting and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates:
Claybrooks Corporation has two manufacturing departments--Casting and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates:
Casting | Assembly | Total | ||||
Estimated total machine-hours (MHs) | 3,000 | 2,000 | 5,000 | |||
Estimated total fixed manufacturing overhead cost | $ | 17,700 | $ | 5,800 | $ | 23,500 |
Estimated variable manufacturing overhead cost per MH | $ | 1.50 | $ | 2.20 |
Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. That predetermined manufacturing overhead rate is closest to:
$7.40 | ||
$4.70 | ||
$3.70 | ||
$6.48 |
Cull Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $462,000, variable manufacturing overhead of $2.20 per machine-hour, and 60,000 machine-hours. The company has provided the following data concerning Job X455 which was recently completed:
Number of units in the job | 20 |
Total machine-hours | 80 |
Direct materials | $ 940 |
Direct labor cost | $ 2,240 |
The total job cost for Job X455 is closest to:
$3,972 | ||
$3,032 | ||
$3,180 | ||
$1,732 |
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