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Question 12 (4 points) The Silver Corporation uses a predetermined overhead rate to apply manufacturing overhead to jobs. The predetermined overhead rate is based on
Question 12 (4 points) The Silver Corporation uses a predetermined overhead rate to apply manufacturing overhead to jobs. The predetermined overhead rate is based on labor cost in Dept. A and on machine-hours in Dept. B. At the beginning of the year, the Corporation made the following estimates: Dept. Dept. A B Direct labor cost $ 60,000$ 40,000 Manufacturing overhead $ 90,000$ 45,000 Direct labor-hours 6,000 9,000 Machine-hours 2,000 15,000 What predetermined overhead rates would be used in Dept. A and Dept. B. respectively? 150% and $3.00 150% and $5.00 67% and $3.00 67% and $5.00 Page 12 of 30
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