Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments.The departmental predetermined overhead rate in the Assembly Department is closest to:

A) $2.90
B) $6.48
C) $5.10
D) $2.20

Question

Angie Valdivia · Accepted Answer

Final Answer : C, Explanation :  To calculate the predetermined overhead rate for the Assembly Department, we need to divide the estimated overhead cost for the department by the estimated machine-hours for the department:Predetermined overhead rate = Estimated overhead cost / Estimated machine-hoursFrom the information given, the estimated overhead cost for the Assembly Department is $2,550,000 and the estimated machine-hours for the department are 500,000. Therefore:Predetermined overhead rate = $2,550,000 / 500,000 machine-hoursPredetermined overhead rate = $5.10 per machine-hourTherefore, the correct answer is C: $5.10. Assembly Department predetermined overhead rate:   Essay

Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments.The departmental predetermined overhead rate in the Assembly Department is closest to:

A) $2.90
B) $6.48
C) $5.10
D) $2.20

Definitions

Learning Objectives

Learning Objectives

Related questions

Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments.The departmental predetermined overhead rate in the Assembly Department is closest to:A) $2.90B) $6.48C) $5.10D) $2.20

Definitions

Learning Objectives

Learning Objectives

Related questions

Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments.The departmental predetermined overhead rate in the Assembly Department is closest to:

A) $2.90
B) $6.48
C) $5.10
D) $2.20