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computeoverhead rate White Company has two departments: cutting and finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each
computeoverhead rate
White Company has two departments: cutting and finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The cutting department bases its rate on machine-hours, and the finishing department bases its rate on direct labour cost. At the beginning of the year, the company made the following estimates: Direct labour-hours Machine-hours Manufacturing overhead cost Direct labour cost Department Cutting Finishing 5,000 21,000 45,000 3,000 $382,500 $ 498,000 $ 75,000 $323,400 Required: 1. Compute the predetermined overhead rate to be used in each department. (Round "Cutting Department" answer to 2 decimal places and "Finishing Department" answer to nearest whole percent.) Cutting Department Finishing % of DLC Predetermined overhead rate per MHStep by Step Solution
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