Merati Corporation has two manufacturing departments--Forming and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates:
During the most recent month, the company started and completed two jobs--Job B and Job L. There were no beginning inventories. Data concerning those two jobs follow:

-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) $2.60
B) $4.70
C) $6.05
D) $2.10

Question

Merati Corporation has two manufacturing departments--Forming and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates:
  During the most recent month, the company started and completed two jobs--Job B and Job L. There were no beginning inventories. Data concerning those two jobs follow:
 
-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) $2.60 
B) $4.70 
C) $6.05 
D) $2.10

Quizplus · Accepted Answer

Assembly Department predetermined overhead rate:
 11ea7761_195a_424d_81a5_2f9439f2fbfb_TB2580_00

Merati Corporation Has Two Manufacturing Departments--Forming and Assembly