Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 departmental predetermined overhead rates with machine-hours as the allocation base in both departments. The departmental predetermined overhead rate in the Assembly Department is closest to:
$5.10 | ||
$6.48 | ||
$2.20 | ||
$2.90 |
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