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natalia tupaz
on Oct 11, 2024

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The predetermined overhead rate for the Forming Department is closest to:

A) $23.12 per machine-hour
B) $2.00 per machine-hour
C) $5.30 per machine-hour
D) $7.30 per machine-hour

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to products, calculated by dividing estimated overhead costs by an allocation base, like direct labor hours or machine hours, before the period begins.

Forming Department

A specific section within a manufacturing process where materials are shaped or formed into parts or products.

Machine-Hour

A unit of measure indicating the operating time of a machine, used in costing to allocate expenses based on machine use.

  • Establish predetermined rates for overhead across different departments, anchored in direct labor-hours or machine-hours.
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Walter ContrerasOct 16, 2024
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