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vsisto vsisto
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Posts: 314
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5 years ago
Apple Valley Corporation uses a job cost system and has two production departments, A and B. Budgeted manufacturing costs for the year are:

Department ADepartment B
Direct materials$700,000$100,000
Direct manufacturing labor$200,000$800,000
Manufacturing overhead$500,000$400,000

The actual material and labor costs charged to Job #432 were as follows:

Total
Direct materials:$25,000
Direct labor:
Department A$8,000
Department B$12,000
$20,000

Apple Valley applies manufacturing overhead costs to jobs on the basis of direct manufacturing labor cost using departmental rates determined at the beginning of the year.

For Department A, the manufacturing overhead allocation rate is ________.
A) 40.0%
B) 50.0%
C) 250.0%
D) 90.0%
Textbook 
Cost Accounting: A Managerial Emphasis

Cost Accounting: A Managerial Emphasis


Edition: 16th
Authors:
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ashleyr1819ashleyr1819
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Posts: 206
5 years ago
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More solutions for this book are available here
 C
Explanation:  $500,000 / $200,000 = 250.0%

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vsisto Author
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5 years ago
Brilliant
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