Top Posters
Since Sunday
a
5
k
5
c
5
B
5
l
5
C
4
s
4
a
4
t
4
i
4
r
4
r
4
Home Q & A Board Other Fields Homework Help Business Accounting
New Topic  
ellie425 ellie425
wrote...
Go to Answer
Posts: 138
Rep: 0 0
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
Authors:
Read 23 times
1 Reply
Replies
Answer verified by a subject expert
nursethomasnursethomas
wrote...
#1
Posts: 123
Rep: 0 0
A year ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

ellie425 Author
wrote...

A year ago
Thanks
jblazah
wrote...

Yesterday
Good timing, thanks!
Butwhy
wrote...

2 hours ago
Correct Slight Smile TY
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1312 People Browsing
 118 Signed Up Today
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 78
  
 1212
  
 39