Gerstein Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $90,000, variable manufacturing overhead of $3.70 per direct labor-hour, and 50,000 direct labor-hours. The company recently completed Job M800 which required 150 direct labor-hours. The predetermined overhead rate is closest to: Multiple Choice $1.80 per direct labor-hour $9.20 per direct labor-hour $5.50 per direct labor-hour $3.70 per direct labor-hour

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Gerstein Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its
predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $90,000, variable manufacturing overhead of $3.70 per direct labor-hour,
and 50,000 direct labor-hours. The company recently completed Job M800 which required 150 direct labor-hours.
The predetermined overhead rate is closest to:
Multiple Choice
$1.80 per direct labor-hour
$9.20 per direct labor-hour
$5.50 per direct labor-hour
$3.70 per direct labor-hour
Transcribed Image Text:Gerstein Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $90,000, variable manufacturing overhead of $3.70 per direct labor-hour, and 50,000 direct labor-hours. The company recently completed Job M800 which required 150 direct labor-hours. The predetermined overhead rate is closest to: Multiple Choice $1.80 per direct labor-hour $9.20 per direct labor-hour $5.50 per direct labor-hour $3.70 per direct labor-hour
Huang Aerospace Corporation manufactures aviation control panels in two departments, Fabrication and Assembly. In the Fabrication department, Huang uses a
predetermined overhead rate of $30 per machine-hour. In the Assembly department, Huang uses a predetermined overhead rate of $12 per direct labor-hour. During the
current year, Job #X2984 incurred the following number of hours in each department:
Fabrication
Assembly
Machine-hours
40
12
Direct labor-hours
3
25
What is the total amount of manufacturing overhead that Huang should have applied to Job #X2984 during the current year?
Multiple Choice
$1,560
$1,500
$1,200
$1,734
Transcribed Image Text:Huang Aerospace Corporation manufactures aviation control panels in two departments, Fabrication and Assembly. In the Fabrication department, Huang uses a predetermined overhead rate of $30 per machine-hour. In the Assembly department, Huang uses a predetermined overhead rate of $12 per direct labor-hour. During the current year, Job #X2984 incurred the following number of hours in each department: Fabrication Assembly Machine-hours 40 12 Direct labor-hours 3 25 What is the total amount of manufacturing overhead that Huang should have applied to Job #X2984 during the current year? Multiple Choice $1,560 $1,500 $1,200 $1,734
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