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jtfortwengler jtfortwengler
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A year ago

Deloria Corporation has two production departments, Forming and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Forming Department’s predetermined overhead rate is based on machine-hours and the Assembly Department’s predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:

FormingAssembly
Machine-hours19,00015,000
Direct labor-hours4,0008,000
Total fixed manufacturing overhead cost$ 129,200$ 77,600
Variable manufacturing overhead per machine-hour$ 1.60
Variable manufacturing overhead per direct labor-hour$ 3.00

During the current month the company started and finished Job T288. The following data were recorded for this job:

Job T288:FormingAssembly
Machine-hours8010
Direct labor-hours3040
Direct materials$ 730$ 380
Direct labor cost$ 900$ 1,200

The predetermined overhead rate for the Assembly Department is closest to:



▸ $3.00 per direct labor-hour

$12.70 per direct labor-hour



▸ $9.70 per direct labor-hour

▸ $5.35 per direct labor-hour
Textbook 
Introduction to Managerial Accounting: Brewer Edition: 9e

Introduction to Managerial Accounting: Brewer Edition: 9e


Edition: 9th
Authors:
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nnennennenne
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