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The cost accountants at Fausse Plante, Inc. have recently completed an analysis of the process for calculating the predetermined overhead rate. They have concurred that
The cost accountants at Fausse Plante, Inc. have recently completed an analysis of the process for calculating the predetermined overhead rate. They have concurred that basing the rate on machine-hours is appropriate. When each batch of artificial plants is completed, the job cost sheet is updated to reflect all costs and activity associated with that job. The following information can be found on the job cost sheet for Job # 888: Direct materials Direct labor-hours Direct labor wage rate Machine-hours $ 2,428 75 $20 per labor-hour 132 machine-hours labor-hours Fausse Plante, Inc.'s cost accountants have determined the predetermined overhead rate is $21 per machine-hour. The total cost that would be recorded on the job cost sheet for Job #888 would be:
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