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Title: Merati Corporation has two manufacturing departments--Forming and Assembly. The company used the ...
Post by: saratoga 22 on Mar 26, 2023

Merati Corporation has two manufacturing departments--Forming and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates:

FormingAssemblyTotal
Estimated total machine-hours (MHs)5,0005,00010,000
Estimated total fixed manufacturing overhead cost$ 28,000$ 10,500$ 38,500
Estimated variable manufacturing overhead cost per MH$ 1.80$ 2.60

During the most recent month, the company started and completed two jobs--Job B and Job L. There were no beginning inventories. Data concerning those two jobs follow:

Job BJob L
Forming machine-hours3,4001,600
Assembly machine-hours2,0003,000

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 Forming Department is closest to:



▸ $5.60

▸ $7.40

▸ $1.80

▸ $6.05


Title: Re: Merati Corporation has two manufacturing departments--Forming and Assembly. The company used the ...
Post by: wordnerd on Mar 26, 2023
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