Harrington Company uses predetermined overhead rates to apply manufacturing over

Question

Harrington Company uses predetermined overhead rates to apply manufacturing overhead to jobs. The predetermined overhead rate is based on machine-hours in the Machining Department and direct labor cost in the Assembly Department. At the beginning of the year, the company made the following estimates:

What predetermined overhead rates would be used in the Machining and Assembly Departments, respectively?

Harrington Company uses predetermined overhead rates to apply manufacturing overhead to jobs. The predetermined overhead rate is based on machine-hours in the Machining Department and direct labor cost in the Assembly Department. At the beginning of the year, the company made the following estimates:

Machining Assembly   Direct labor hours 16,000 12,000   Direct labor cost $ 20,000 $ 15,000   Machine-hours 5,000 1,000   Manufacturing overhead $ 25,000 $ 30,000

What predetermined overhead rates would be used in the Machining and Assembly Departments, respectively?

Explanation / Answer

Machining   Direct labor hours 16,000   Direct labor cost 20,000   Machine-hours 5,000   Manufacturing overhead 25,000 predetermined overhead rates (Manufacturing overhead/machine Hour) 5 Assembly   Direct labor hours 12,000   Direct labor cost 15,000   Machine-hours 1,000   Manufacturing overhead 30,000 predetermined overhead rates (Manufacturing overhead/Direct labor) 2

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.