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Vanliere Corporation has two production departments, Machining and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Machining Department's predetermined overhead rate is based on machine-hours and the Finishing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Machining Finishing 19,000 3,000 $138,700 $ 1.90 Machine-hours 11,000 Direct labor-hours 6,000 Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour $52,800 Variable manufacturing overhead per direct labor-hour $ 3.80 During the current month the company started and finished Job A803. The following data were recorded for this job: Job A803: Machining Finishing Machine-hours 90 20 Direct labor-hours 20 60 The predetermined overhead rate for the Finishing Department is closest to:

Vanliere Corporation has two production departments, Machining and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Machining Department's predetermined overhead rate is based on machine-hours and the Finishing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Machining Finishing 19,000 3,000 $138,700 $ 1.90 Machine-hours 11,000 Direct labor-hours 6,000 Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour $52,800 Variable manufacturing overhead per direct labor-hour $ 3.80 During the current month the company started and finished Job A803. The following data were recorded for this job: Job A803: Machining Finishing Machine-hours 90 20 Direct labor-hours 20 60 The predetermined overhead rate for the Finishing Department is closest to:

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Vanliere Corporation has two production departments, Machining and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Machining Department's predetermined overhead rate is based on machine-hours and the Finishing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Machining Finishing Machine-hours 19,000 11,000 Direct labor-hours 3,000 6,000 Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour $138,700 $52,800 $ 1.90 $ 3.80 During the current month the company started and finished Job A803. The following data were recorded for this job: Job A803: Machining Finishing Machine-hours 90 20 Direct labor-hours 20 60 The predetermined overhead rate for the Finishing Department is closest to:
Transcribed Image Text:Vanliere Corporation has two production departments, Machining and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Machining Department's predetermined overhead rate is based on machine-hours and the Finishing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Machining Finishing Machine-hours 19,000 11,000 Direct labor-hours 3,000 6,000 Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour $138,700 $52,800 $ 1.90 $ 3.80 During the current month the company started and finished Job A803. The following data were recorded for this job: Job A803: Machining Finishing Machine-hours 90 20 Direct labor-hours 20 60 The predetermined overhead rate for the Finishing Department is closest to:
Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Total machine-hours 30,000 Total fixed manufacturing overhead cost $252,000 Variable manufacturing overhead per machine-hour $ 2.10 Recently, Job T687 was completed with the following characteristics: Number of units in the job 10 Total machine-hours 30 Direct materials $ 675 Direct labor cost $1,050 The estimated total manufacturing overhead is closest to:
Transcribed Image Text:Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Total machine-hours 30,000 Total fixed manufacturing overhead cost $252,000 Variable manufacturing overhead per machine-hour $ 2.10 Recently, Job T687 was completed with the following characteristics: Number of units in the job 10 Total machine-hours 30 Direct materials $ 675 Direct labor cost $1,050 The estimated total manufacturing overhead is closest to:
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