Business, 06.05.2020 05:13 darkdragon67
Jurica Corporation has two production departments, Forming and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Forming 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: Forming Customizing Machine-hours 19,000 15,000 Direct labor-hours 4,000 6,000 Total fixed manufacturing overhead cost $ 100,700 $ 63,000 Variable manufacturing overhead per machine-hour $ 2.00 Variable manufacturing overhead per direct labor-hour $ 3.90 The predetermined overhead rate for the Forming Department is closest to:
A. $23.12 per machine-hour
B. $5.30 per machine-hour
C. $2.00 per machine-hour
D. $7.30 per machine-hour
Answers: 3
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Jurica Corporation has two production departments, Forming and Customizing. The company uses a job-o...
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