Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours.That predetermined manufacturing overhead rate is closest to:

A) $4.70
B) $7.40
C) $6.48
D) $3.70

Question

Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours.That predetermined manufacturing overhead rate is closest to:A) $4.70B) $7.40C) $6.48D) $3.70

Rasha Abbas · Accepted Answer

Final Answer : C, Explanation :  The first step is to calculate the estimated total overhead costs in the two departments.Casting   Assembly   The second step is to combine the estimated manufacturing overhead costs in the two departments ($22,200 + $10,200 = $32,400)to calculate the plantwide predetermined overhead rate as follow:

Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours.That predetermined manufacturing overhead rate is closest to:

A) $4.70
B) $7.40
C) $6.48
D) $3.70

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