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vesna_86 [32]
3 years ago
9

The Silver Corporation uses a predetermined overhead rate to apply manufacturing overhead to jobs. The predetermined overhead ra

te is based on labor cost in Dept. A and on machine-hours in Dept. B. At the beginning of the year, the Corporation made the following estimates:
Dept. A Dept. B Direct labor cost $60,000 $40,000 Manufacturing overhead $90,000 $45,000 Direct labor-hours 6,000 9,000 Machine-hours 2,000 15,000
What predetermined overhead rates would be used in Dept. A and Dept. B, respectively?

(A) 67% and $3
(B) 67% and $5
(C) 150% and $3
Business
1 answer:
mixer [17]3 years ago
8 0

Answer: Option (C) is correct.

Explanation:

Given that,

In Dept. A,

Direct labor cost = $60,000

Manufacturing overhead = $90,000

Direct labor-hours = 6,000

Machine-hours = 2,000

In Dept. B,

Direct labor cost = $40,000

Manufacturing overhead = $45,000

Direct labor-hours = 9,000

Machine-hours = 15,000

Predetermined overhead rates in Dept. A = \frac{Manufacturing\ Overhead}{Direct\ labor\ cost} \times 100

                                                                       = \frac{90,000}{60,000} \times 100

                                                                       = 150%

In dept. B = \frac{Manufacturing\ Overhead}{Machine\ Hour}

                = \frac{45,000}{15,000}

                = $3

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Answer:

The correct answer is: Service Quality Gap.

Explanation:

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3 years ago
Why should people who are moving in together consider creating a roommate agreement?
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Answer:

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Which of these inventory changes would be accounted for prospectively? Select one: a. FIFO to LIFO, but not LIFO to FIFO b. LIFO
Basile [38]

Answer: a. FIFO to LIFO, but not LIFO to FIFO

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7 0
2 years ago
​Treasurers, Inc., a manufacturer of gift​ articles, uses a single plantwide rate to allocate indirect costs with machine hours
Gekata [30.6K]

Answer:

predetermined overhead allocation rate is $228 per hour

Explanation:

given data

Estimated over head costs = $8,000,000

Estimated machine hours = 35,000

actual machine hours = 31,000

to find out

predetermined overhead allocation rate

solution

we know that predetermined overhead allocation rate is express as

predetermined overhead allocation rate = \frac{estimate overhead cost}{estimate machine hour}

put here value

predetermined overhead allocation rate = \frac{8000000}{35000}

predetermined overhead allocation rate = $228.571

so predetermined overhead allocation rate is $228 per hour

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3 years ago
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