Biology Forums - Study Force

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	Assembly	Total
Estimated total machine-hours (MHs)	3,000	2,000	5,000
Estimated total fixed manufacturing overhead cost	$ 17,700	$ 5,800	$ 23,500
Estimated variable manufacturing overhead cost per MH	$ 1.50	$ 2.20

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:

▸ $2.90

▸ $6.48

▸ $5.10

▸

$2.20

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