Bassett Corporation has two production departments, Milling and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Milling Department's predetermined overhead rate is based on machine-hours and the Customizing 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:  MillingCustomizingMachine-hours 16,000 12,000Direct labor-hours 2,000 8,000Total fixed manufacturing overhead cost$118,400$87,200Variable manufacturing overhead per machine-hour$2.10  Variable manufacturing overhead per direct labor-hour  $3.30 The predetermined overhead rate for the Milling Department is closest to:

A. $9.50 per machine-hour
B. $19.00 per machine-hour
C. $2.10 per machine-hour
D. $7.40 per machine-hour


Answer: A

Business

You might also like to view...

Due to corporate downsizing, significant segments of project work have been outsourced to other organizations.

Answer the following statement true (T) or false (F)

Business

Program flowcharts are used to describe the logic represented in system flowcharts

Indicate whether the statement is true or false

Business

When developing a strong résumé, the planning, writing and completing process should all be done at one time

Indicate whether the statement is true or false.

Business

Houston Company produces a product that sells for $175 per unit and has variable costs of $50 per unit. Houston's annual fixed costs are $200,000, and the company wishes to earn a profit of $80,000.Required:Use the equation method to determine the sales volume in units and dollars required to earn the desired profit.

What will be an ideal response?

Business