Answered step by step
Verified Expert Solution
Link Copied!

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 Casting Department is closest to:

Group of answer choices

$1.50

$7.40

$5.90

$6.48

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions