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28 Sep 2019
Hickingbottom Corporation has two production departments, Forming and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Forming Departmentâs predetermined overhead rate is based on machine-hours and the Finishing Departmentâs predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:
Forming Finishing Machine-hours 17,000 15,000 Direct labor-hours 1,000 7,000 Total fixed manufacturing overhead cost $ 96,900 $ 65,800 Variable manufacturing overhead per machine-hour $ 2.00 Variable manufacturing overhead per direct labor-hour $ 3.60
During the current month the company started and finished Job M381. The following data were recorded for this job:
Job M381: Forming Finishing Machine-hours 80 30 Direct labor-hours 30 40 Direct materials $ 840 $ 350 Direct labor cost $ 750 $ 1,000
The predetermined overhead rate for the Forming Department is closest to:
Multiple Choice
$5.70 per machine-hour
$7.70 per machine-hour
$2.00 per machine-hour
$18.70 per machine-hour
Hickingbottom Corporation has two production departments, Forming and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Forming Departmentâs predetermined overhead rate is based on machine-hours and the Finishing Departmentâs predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:
Forming | Finishing | |||||
Machine-hours | 17,000 | 15,000 | ||||
Direct labor-hours | 1,000 | 7,000 | ||||
Total fixed manufacturing overhead cost | $ | 96,900 | $ | 65,800 | ||
Variable manufacturing overhead per machine-hour | $ | 2.00 | ||||
Variable manufacturing overhead per direct labor-hour | $ | 3.60 | ||||
During the current month the company started and finished Job M381. The following data were recorded for this job:
Job M381: | Forming | Finishing | ||
Machine-hours | 80 | 30 | ||
Direct labor-hours | 30 | 40 | ||
Direct materials | $ | 840 | $ | 350 |
Direct labor cost | $ | 750 | $ | 1,000 |
The predetermined overhead rate for the Forming Department is closest to:
Multiple Choice
$5.70 per machine-hour
$7.70 per machine-hour
$2.00 per machine-hour
$18.70 per machine-hour
rsowmya675Lv6
14 May
Sixta KovacekLv2
28 Sep 2019
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