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%.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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TB MC Qu. 6-55 (Algo) The Bondi Company uses a predetermined...
The Bondi Company uses a predetermined
| 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%.
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