The HY manufacturing company computes predetermined overhead rate on the basis of machine hours in the machining department and direct labor cost in the assembly department. The following estimates were made at the beginning of the year: Direct labor hours Direct labor cost Machine hours Manufacturing overhead Machining Assembly 12,000 $18,000 3,000 $15,000 8,000 $10,000 1,000 $20,000 Based on the above information, what are the predetermined overhead rates for machining department and assembly department? Select one: a. $5 and 100% b. $5 and 200% C. $6 and 200% d. $5 and 50% OOOO

The HY manufacturing company computes predetermined overhead rate on the basis of machine hours in the machining department and direct labor cost in the assembly department. The following estimates were made at the beginning of the year: Direct labor hours Direct labor cost Machine hours Manufacturing overhead Machining Assembly 12,000 $18,000 3,000 $15,000 8,000 $10,000 1,000 $20,000 Based on the above information, what are the predetermined overhead rates for machining department and assembly department? Select one: a. $5 and 100% b. $5 and 200% C. $6 and 200% d. $5 and 50% OOOO

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Description: The HY manufacturing company computes predetermined overhead rate on the basis of machinehours in the machining department and direct labor cost in the assembly department. Thefollowing estimates were made at the beginning of the year:Direct labor h

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Question

The HY manufacturing company computes predetermined overhead rate on the basis of machine
hours in the machining department and direct labor cost in the assembly department. The
following estimates were made at the beginning of the year:
Direct labor hours
Direct labor cost
Machine hours
Manufacturing overhead
Machining Assembly
12,000
$18,000
3,000
$15.000
8,000
$10,000
1,000
$20.000
Based on the above information, what are the predetermined overhead rates for machining
department and assembly department?
Select one:
a. $5 and 100%
b. $5 and 200%
C. $6 and 200%
d. $5 and 50%
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