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ktpizzle1993 ktpizzle1993
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A year ago

Tarrant Corporation has two manufacturing departments--Casting and Finishing. The company used the following data at the beginning of the year to calculate predetermined overhead rates:

CastingFinishingTotal
Estimated total machine-hours (MHs)1,0004,0005,000
Estimated total fixed manufacturing overhead cost$ 5,700$ 11,200$ 16,900
Estimated variable manufacturing overhead cost per MH$ 1.30$ 2.90

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 Casting Department is closest to:



▸ $5.70

▸ $1.30

▸ $5.96

▸ $7.00
Textbook 
Introduction to Managerial Accounting: Brewer Edition: 9e

Introduction to Managerial Accounting: Brewer Edition: 9e


Edition: 9th
Authors:
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letssdoothissletssdoothiss
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A year ago
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