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MissTica
2 years ago
6

White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermin

ed overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates:
Cutting Finishing
Direct labor-hours . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,000 30,000
Machine-hours . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48,000 5,000
Total fixed manufacturing overhead cost . . . . . . . . . . . . . . . . $264,000 $366,000
Variable manufacturing overhead per machine-hour . . . . . . ....$2.00 ______
Variable manufacturing overhead per direct labor-hour . . . . . _____ $4.00

Required:
Compute the predetermined overhead rate to be used in each department.
Business
1 answer:
Blababa [14]2 years ago
4 0

Answer and Explanation:

The computation of the predetermined overhead rate is shown below:

For Cutting department

= Variable manufacturing overhead per machine hour + (Total fixed manufacturing overhead ÷ machine hours)

= $2 + ($264,000 ÷ 48,000)

= $2 + $5.50

= $7.50

For finishing department

= Variable manufacturing overhead per direct labour + (Total fixed manufacturing overhead ÷ direct labor hours)

= $4 + ($366,000 ÷ 30,000)

= $4 + $12.20

= $16.20

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An increase in income and expenses

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When the main provider of a family dies and he/she doesn't have any type of life insurance, then the whole family's economy will suffer. Their total income will probably plummet. Besides losing John's income, his family must all the  expenses related to his death, e.g. burial. As a terrible consequence, John's family will see their standard of living decrease.

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3 years ago
The sustainable growth rate is based on the premise that:
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2 years ago
You have just determined that the actual number of workstations that will be used on an assembly line is 6, using assembly line
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Answer:

The assembly line efficiency is 4.17% (to 2 decimal places)

Explanation:

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5 0
3 years ago
If the absolute price of good X is $10 and the absolute price of good Y is $14, then what is (a) the relative price of good X in
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Answer:

 1X= 5/7Y

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Explanation:

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The relative price of  product Y in terms of product X is $14/$10=7/5 and also can be expressed in standard format as IY=7/5Y

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<h3>What is the cost?</h3>

Generally, payment is required before it can be obtained or completed.

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2 years ago
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