Question
Rhett Company has two departments, Machining and Assembly. The following estimates are for the coming year: Machining Assembly Direct manufacturing labor-hours 10,000 50,000 Machine-hours 40,000
Rhett Company has two departments, Machining and Assembly. The following estimates are for the coming year:
| Machining | Assembly | |
| Direct manufacturing labor-hours | 10,000 | 50,000 |
| Machine-hours | 40,000 | 20,000 |
| Manufacturing overhead | $200,000 | $400,000 |
The budgeted indirect-cost driver rate for the Machining Department based on the number of machine-hours in that department is: a. $5 per machine-hour b. $10 per machine-hour c. $20 per machine-hour d. None of these answers is correct.
Please explain your answer for clarity!
Thank you,
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Risk Based Management Led Audit Driven Safety Management Systems
Authors: Ron C. McKinnon
1st Edition
1498767923, 978-1498767927
