The Silver Corporation uses a predetermined overhead rate to apply manufacturing overhead to jobs. The predetermined overhead rate is based on labor cost in Dept. A and on machine-hours in Dept. B. At the beginning of the year, the Corporation made the following estimates: Dept. ADept. BDirect labor cost$60,000$40,000Manufacturing overhead$90,000$45,000Direct labor-hours 6,000 9,000Machine-hours 2,000 15,000 What predetermined overhead rates would be used in Dept. A and Dept. B, respectively?
A. 67% and $5.00
B. 150% and $3.00
C. 67% and $3.00
D. 150% and $5.00
Answer: B
You might also like to view...
Which of the following is a correct statement relating to the concept of mutual agency and the corporate form of business?
a. There is no mutual agency with the corporate form of business. b. Mutual agency may or may not exist in a corporation, depending on the individual state law. c. Mutual agency always exists in the corporate form of business. d. Mutual agency may or may not exist in a corporation, depending on a vote by the shareholders.
One difference between the periodic and the perpetual inventory systems is that under the perpetual method the purchases account is not used
Indicate whether the statement is true or false
An example of an effective I-statement is, "I think you are responsible."
Indicate whether the statement is true or false.
Research about support networks suggests that socially connected people
A) are more prone to stress. B) are less prone to stress. C) are too busy to be stressed. D) have no reason to worry.