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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
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