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Camm Corporation has two manufacturing departments--Forming and Assembly. The company used the ...

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Camm Corporation has two manufacturing departments--Forming and Assembly. The company used the ...

Camm 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:

	Forming	Assembly	Total
Estimated total machine-hours (MHs)	3,000	2,000	5,000
Estimated total fixed manufacturing overhead cost	$ 12,600	$ 4,600	$ 17,200
Estimated variable manufacturing overhead cost per MH	$ 1.70	$ 2.50

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:

▸ $2.50

▸ $2.30

▸ $4.80

▸ $5.46

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Introduction to Managerial Accounting: Brewer Edition: 9e

Edition: 9^th

Authors: Brewer, Garrison, Noreen

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