The Golden Corporation uses a predetermined overhead rate to apply manufacturing overhead to jobs. The predetermined overhead rate is based on direct labor costs in Dept. X and on machine-hours in Dept. Y. At the beginning of the year, the Corporation made the following estimates: Dept. X Dept. Y Direct labor cost $80,000 $50,000 Manufacturing overhead $120,000 $60,000 Direct labor-hours 8,000 hours 12,000 hours 5,000 hours 20,000 hours Machine-hours What predetermined overhead rates would be used in Dept. X and Dept. Y, respectively?

The Golden Corporation uses a predetermined overhead rate to apply manufacturing overhead to jobs. The predetermined overhead rate is based on direct labor costs in Dept. X and on machine-hours in Dept. Y. At the beginning of the year, the Corporation made the following estimates: Dept. X Dept. Y Direct labor cost $80,000 $50,000 Manufacturing overhead $120,000 $60,000 Direct labor-hours 8,000 hours 12,000 hours 5,000 hours 20,000 hours Machine-hours What predetermined overhead rates would be used in Dept. X and Dept. Y, respectively?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 8PB: Queen Bees Honey, Inc., estimated its annual overhead to be $110,000 and based its predetermined...

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