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Home Q & A Board Other Fields Homework Help Business Accounting
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reync89 reync89
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A year ago

The Silver Corporation uses a predetermined overhead rate to apply manufacturing overhead to jobs. The predetermined overhead rate is based on labor cost in Department A and on machine-hours in Department B. At the beginning of the year, the Corporation made the following estimates:

Department ADepartment B
Direct labor cost$ 60,000$ 40,000
Manufacturing overhead$ 90,000$ 45,000
Direct labor-hours6,0009,000
Machine-hours2,00015,000

What predetermined overhead rates would be used in Department A and Department B, respectively?



▸ 67% and $3.00

▸ 150% and $5.00

▸ 150% and $3.00

▸ 67% and $5.00
Textbook 
Introduction to Managerial Accounting: Brewer Edition: 9e

Introduction to Managerial Accounting: Brewer Edition: 9e


Edition: 9th
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bolusmachinebolusmachine
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