Merati Corporation has two manufacturing departments-Forming and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates: FormingAssemblyTotalEstimated total machine-hours (MHs) 5,000 5,000 10,000Estimated total fixed manufacturing overhead cost$28,000$10,500$38,500Estimated variable manufacturing overhead cost per MH$1.80$2.60 During the most recent month, the company started and completed two jobs-Job B and Job L. There were no beginning inventories. Data concerning those two jobs follow: Job BJob LForming machine-hours 3,400 1,600Assembly machine-hours 2,000 3,000Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments. The departmental
predetermined overhead rate in the Forming Department is closest to:
A. $5.60
B. $1.80
C. $7.40
D. $6.05
Answer: C
You might also like to view...
Scholarly research and popular work on the nature of leadership exploded in this decade.
A. 1950s B. 1960s C. 1970s D. 1980s
On a manufacturer's Income Statement expenses are separated into the following three categories
A) production, period, and indirect B) materials, work in process, and finished goods C) production, selling, and administrative D) variable, fixed, and direct
____ become(s) a part of the physical product and consist(s) of either finished items ready for assembly or products that need little processing before assembly.
A. Process materials B. Supplies C. Accessory equipment D. Component parts E. Major equipment
A partner's profit from a partnership is taxed as income to the firm.
Answer the following statement true (T) or false (F)