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Almaraz Corporation has two manufacturing departments--Forming and Finishing. The company used the ...

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Almaraz Corporation has two manufacturing departments--Forming and Finishing. The company used the ...

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

	Forming	Finishing	Total
Estimated total machine-hours (MHs)	7,000	3,000	10,000
Estimated total fixed manufacturing overhead cost	$ 40,600	$ 8,100	$ 48,700
Estimated variable manufacturing overhead cost per MH	$ 1.30	$ 2.80

Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. That predetermined manufacturing overhead rate is closest to:

▸ $6.62

▸ $4.87

▸

Textbook

Introduction to Managerial Accounting: Brewer Edition: 9e

Edition: 9^th

Authors: Brewer, Garrison, Noreen

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