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Suppose you work as a custom mask maker at Melvin's Mask Makers, which uses a job order cost system. Melvin (your boss) uses a predetermined
Suppose you work as a custom mask maker at Melvin's Mask Makers, which uses a job order cost system. Melvin (your boss) uses a predetermined overhead rate to apply manufacturing overhead to the custom mask orders and bases the rate on the number of hours a mask maker spends on each order. Melvin's busiest week of the year was leading up to August 1st when masks became mandatory. Melvin estimated that the total manufacturing overhead costs would be $15,360 for the week, and the estimated total hours worked between all 32 of the makers were 1,280. Each maker earns $15 an hour. Due to some rush orders for businesses, at the end of the week, the actual number of hours worked ended up being 1,472. Melvin knows you're taking managerial accounting, so they've asked you to help with the accounting for the custom mask orders this week. What is the predetermined overhead rate for the week (rounded to the nearest whole number)? $15 $12 $11 O $10
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