laybrooks Corporation has two manufacturing departments--Casting and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates: Casting Assembly Total Estimated total machine-hours (MHs) 3,000 2,000 5,000 Estimated total fixed manufacturing overhead cost $ 17,700 $ 5,800 $ 23,500 Estimated variable manufacturing overhead cost per MH $ 1.50 $ 2.20 Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. That predetermined manufacturing overhead rate is closest to: $6.48 $7.40 $4.70 $3.70
laybrooks Corporation has two manufacturing departments--Casting and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates: Casting Assembly Total Estimated total machine-hours (MHs) 3,000 2,000 5,000 Estimated total fixed manufacturing overhead cost $ 17,700 $ 5,800 $ 23,500 Estimated variable manufacturing overhead cost per MH $ 1.50 $ 2.20 Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. That predetermined manufacturing overhead rate is closest to: $6.48 $7.40 $4.70 $3.70
Chapter1: Financial Statements And Business Decisions
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laybrooks Corporation has two manufacturing departments--Casting and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates:
Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. That predetermined manufacturing overhead rate is closest to:
| Casting | Assembly | Total | ||||
| Estimated total machine-hours (MHs) | 3,000 | 2,000 | 5,000 | |||
| Estimated total fixed |
$ | 17,700 | $ | 5,800 | $ | 23,500 |
| Estimated variable manufacturing overhead cost per MH | $ | 1.50 | $ | 2.20 |
|
$6.48
|
||
|
$7.40
|
||
|
$4.70
|
||
|
$3.70
|
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