htm in Netfix h Hulu 2 Quiz Claybrooks Corporation has two manufacturing departm

Question

htm in Netfix h Hulu 2 Quiz Claybrooks Corporation has two manufacturing departments-Casting and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates Casting 3,000 Total 5,000 Estimated total machine-hours (MHs) Estimated total fixed manufacturing overhead cost $ 17,700 5,800 23,500 Estimated variable manufacturing overhead cost per 1.502.20 2,000 MH Assume 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 Assembly Department is closest to:

Explanation / Answer

Answer is $ 5.10 Explanation: Pre-determined OH rate based on MH for Assembly: Variable Mannufacturing OH rate per MH 2.2 Fixed Manufacturing OH rate per MH 2.9 (5800 /2000) Pre-determined OH rate based on MH for Assembly: 5.1

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