Homework Help is Here – Start Your Trial Now!
Business
Accounting
The Bondi Company uses a predetermined overhead rate in applying overhead to production orders on a direct labor cost basis in Department A and on a machine hour basis in Department B. At the beginning of the year, the company made the following estimates:     Dept. A   Dept. B Direct labor cost $ 62,000     $ 42,000   Factory overhead $ 95,480     $ 47,120   Direct labor hours   6,200       9,200   Machine hours   2,200       15,200     What predetermined overhead rate would be used in Department A and Department B, respectively?   Multiple Choice a) 154% and 310%. b) 154% and $3.10. c) $1.54 and $3.10. d) $1.54 and 310%.

The Bondi Company uses a predetermined overhead rate in applying overhead to production orders on a direct labor cost basis in Department A and on a machine hour basis in Department B. At the beginning of the year, the company made the following estimates:     Dept. A   Dept. B Direct labor cost $ 62,000     $ 42,000   Factory overhead $ 95,480     $ 47,120   Direct labor hours   6,200       9,200   Machine hours   2,200       15,200     What predetermined overhead rate would be used in Department A and Department B, respectively?   Multiple Choice a) 154% and 310%. b) 154% and $3.10. c) $1.54 and $3.10. d) $1.54 and 310%.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
100%

TB MC Qu. 6-55 (Algo) The Bondi Company uses a predetermined...

 

The Bondi Company uses a predetermined overhead rate in applying overhead to production orders on a direct labor cost basis in Department A and on a machine hour basis in Department B. At the beginning of the year, the company made the following estimates:
 

  Dept. A   Dept. B
Direct labor cost $ 62,000     $ 42,000  
Factory overhead $ 95,480     $ 47,120  
Direct labor hours   6,200       9,200  
Machine hours   2,200       15,200  
 


What predetermined overhead rate would be used in Department A and Department B, respectively?

 

Multiple Choice
  • a)

    154% and 310%.

  • b)

    154% and $3.10.

  • c)

    $1.54 and $3.10.

  • d)

    $1.54 and 310%.

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS