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Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments. The departmental predetermined overhead rate in the Forming Department is closest to: Multiple Choice O $5.60 $7.40 $1.80 $6.05

Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments. The departmental predetermined overhead rate in the Forming Department is closest to: Multiple Choice O $5.60 $7.40 $1.80 $6.05

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments. The departmental predetermined overhead rate in the Forming Department is closest to: Multiple Choice O $5.60 $7.40 $1.80 $6.05
Transcribed Image Text:Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments. The departmental predetermined overhead rate in the Forming Department is closest to: Multiple Choice O $5.60 $7.40 $1.80 $6.05
15 Merati Corporation has two manufacturing departments--Forming and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates: Estimated total machine-hours (MHS) Estimated total fixed manufacturing overhead cost Estimated variable manufacturing overhead cost per MH Forming machine-hours Assembly machine-hours Forming 5,000 Job B Job L 3,400 1,600 2,000 3,000 $ 28,000 $ 1.80 Assembly 5,000 $ 10,500 $ 2.60 Total 10,000 During the most recent month, the company started and completed two jobs-Job B and Job L. There were no beginning inventories. Data concerning those two jobs follow: $ 38,500 Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments. The departmental predetermined overhead rate in the Forming Department is closest to:
Transcribed Image Text:15 Merati Corporation has two manufacturing departments--Forming and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates: Estimated total machine-hours (MHS) Estimated total fixed manufacturing overhead cost Estimated variable manufacturing overhead cost per MH Forming machine-hours Assembly machine-hours Forming 5,000 Job B Job L 3,400 1,600 2,000 3,000 $ 28,000 $ 1.80 Assembly 5,000 $ 10,500 $ 2.60 Total 10,000 During the most recent month, the company started and completed two jobs-Job B and Job L. There were no beginning inventories. Data concerning those two jobs follow: $ 38,500 Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments. The departmental predetermined overhead rate in the Forming Department is closest to:
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