White Company has two departments, Cutting and Finishing. The company uses job-order costing and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates: Direct labor-hours Machine-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Department Cutting 7,800 59,500 $360,000 $ 3.00 0 Finishing 83,000 3,800 $ 418,000 0 $3.75
White Company has two departments, Cutting and Finishing. The company uses job-order costing and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates: Direct labor-hours Machine-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Department Cutting 7,800 59,500 $360,000 $ 3.00 0 Finishing 83,000 3,800 $ 418,000 0 $3.75
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![White Company has two departments, Cutting and Finishing. The company uses job-order costing and computes a predetermined
overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its
rate on direct labor-hours. At the beginning of the year, the company made the following estimates:
Direct labor-hours
Machine-hours
Total fixed manufacturing overhead cost
Variable manufacturing overhead per machine-hour
Variable manufacturing overhead per direct labor-hour
Department
Cutting
7,800
59,500
$360,000
$ 3.00
0
Finishing
83,000
3,800
$ 418,000
0
$3.75](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3ff68515-e963-4cb1-891d-d97f62b680be%2F8253c0a9-e837-4d6d-9574-1620a648989e%2F378ctoe_processed.png&w=3840&q=75)
Transcribed Image Text:White Company has two departments, Cutting and Finishing. The company uses job-order costing and computes a predetermined
overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its
rate on direct labor-hours. At the beginning of the year, the company made the following estimates:
Direct labor-hours
Machine-hours
Total fixed manufacturing overhead cost
Variable manufacturing overhead per machine-hour
Variable manufacturing overhead per direct labor-hour
Department
Cutting
7,800
59,500
$360,000
$ 3.00
0
Finishing
83,000
3,800
$ 418,000
0
$3.75
![Complete this question by entering your answers in the tabs given below.
Required 1 Required 2
Required 3
Compute the predetermined overhead rate for each department.
Note: Round your answers to 2 decimal places.
Predetermined overhead rate
Cutting Department
per MH
Finishing Department
per DLH](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3ff68515-e963-4cb1-891d-d97f62b680be%2F8253c0a9-e837-4d6d-9574-1620a648989e%2Fibd6vx6_processed.png&w=3840&q=75)
Transcribed Image Text:Complete this question by entering your answers in the tabs given below.
Required 1 Required 2
Required 3
Compute the predetermined overhead rate for each department.
Note: Round your answers to 2 decimal places.
Predetermined overhead rate
Cutting Department
per MH
Finishing Department
per DLH
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