Shakespeare company has two departments: cutting and finishing. the company uses a job-order costing system and computes a predetermined overhead rate in each department. the cutting department bases its rate on machine-hours, and the finishing department bases its rate on direct labor-hours. at the beginning of the year, the company made the following estimates: cutting finishing direct labor-hours 8,100 75,000 machine-hours 64,500 1,200 total fixed manufacturing overhead cost $370,000 $405,000 variable manufacturing overhead per machine-hour $3.00 - variable manufacturing overhead per direct labor-hour - $3.75 compute the predetermined overhead rate to be used in each department.

The predetermined overhead rate to be used in cutting and the finishing department is $8.73 per hour and $9.15 per hour respectively

Explanation:

The computation of predetermined overhead rate is shown below:

For Cutting department:

Predetermined overhead rate = (Estimated fixed manufacturing Overhead cost ÷ estimated machine hours)  + Variable manufacturing overhead per machine-hour

=  ($370,000 ÷ 64,500 hours)  + $3.00

= $8.73 per hour

For Finishing Department:

Predetermined overhead rate = (Estimated l fixed manufacturing Overhead cost ÷ estimated direct labor hours)  +  Variable manufacturing overhead per direct labor-hour

= ($405,000 ÷ 75,000 hours)  + $3.75

= $9.15 per hour

answer: 11/12

step-by-step explanation: 4 1/4 and 3 1/3 is equivalent to 4 3/12 and 3 4/12. 4 3/12 - 3 4/12 =11/12