The Crater Company uses predetermined overhead rates to allocate manufacturing overhead to products. The predetermined overhead rate is based on labor cost in Dept. A and machine-hours in Dept. B. At the beginning of the year, the company made the following estimates: Dept A Dept B Direct labor cost $ 83,000 $ 60,000 Manufacturing overhead $ 190,900 $ 117,300 Direct labor-hours 9,800 11,800 Machine-hours 4,800 13,800 What predetermined overhead rates would be used in Dept A and Dept B, respectively? Multiple Choice 116.72% and $9.30. 125% and $22.00. 230% and $8.50. 230% and $9.30.
The Crater Company uses predetermined overhead rates to allocate manufacturing overhead to products. The predetermined overhead rate is based on labor cost in Dept. A and machine-hours in Dept. B. At the beginning of the year, the company made the following estimates: Dept A Dept B Direct labor cost $ 83,000 $ 60,000 Manufacturing overhead $ 190,900 $ 117,300 Direct labor-hours 9,800 11,800 Machine-hours 4,800 13,800 What predetermined overhead rates would be used in Dept A and Dept B, respectively? Multiple Choice 116.72% and $9.30. 125% and $22.00. 230% and $8.50. 230% and $9.30.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The Crater Company uses predetermined
| Dept A | Dept B | ||||||
| Direct labor cost | $ | 83,000 | $ | 60,000 | |||
| Manufacturing overhead | $ | 190,900 | $ | 117,300 | |||
| Direct labor-hours | 9,800 | 11,800 | |||||
| Machine-hours | 4,800 | 13,800 | |||||
What predetermined overhead rates would be used in Dept A and Dept B, respectively?
Multiple Choice
-
116.72% and $9.30.
-
125% and $22.00.
-
230% and $8.50.
-
230% and $9.30.
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