Question
Juarez, Inc. uses a job-order costing system for its products, which pass from the Machining Department, to the Assembly Department, to finished-goods inventory. The Machining
Juarez, Inc. uses a job-order costing system for its products, which pass from the Machining Department, to the Assembly Department, to finished-goods inventory. The Machining Department is heavily automated; in contrast, the Assembly Department performs a number of manual-assembly activities. The company applies manufacturing overhead using machine hours in the Machining Department and direct-labor cost in the Assembly Department. The following information relates to the year just ended:
Selling and administrative expense amounted to $2,500,000. Assuming the use of normal costing, determine the predetermined overhead rates used in the Machining Department and the Assembly Department. | |||||||||||||||||||||||||||||||||||||||
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