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ellie425 ellie425
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A year ago

Garza Corporation has two production departments, Casting and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Casting Department’s predetermined overhead rate is based on machine-hours and the Customizing 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:

CastingCustomizing
Machine-hours20,00013,000
Direct labor-hours1,0007,000
Total fixed manufacturing overhead cost$ 152,000$ 68,600
Variable manufacturing overhead per machine-hour$ 2.10
Variable manufacturing overhead per direct labor-hour$ 4.30

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



▸

$9.70 per machine-hour



▸ $7.60 per machine-hour

▸ $2.10 per machine-hour

▸ $27.71 per machine-hour
Textbook 
Introduction to Managerial Accounting: Brewer Edition: 9e

Introduction to Managerial Accounting: Brewer Edition: 9e


Edition: 9th
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nursethomasnursethomas
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ellie425 Author
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A year ago
Thanks
ediblefruitz
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Yesterday
This site is awesome
jblazah
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2 hours ago
Good timing, thanks!
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