Question: Compton Company uses a predetermined overhead rate in applying overhead to production orders on a labor cost basis in Department A and on a machine-hours

Compton Company uses a predetermined overhead rate in applying overhead to production orders on a labor cost basis in Department A and on a machine-hours basis in Department B. At the beginning of the most recently completed year, the company made the following estimates: What predetermined overhead rate would be used in Department A and Department B, respectively? A. 83% and $5 B. 83%and $3 C. 120% and $3 D. 83% and $4 The following data have been recorded for recently completed Job 674 on its job cost sheet. Direct materials cost was $2, 039. A total of 32 direct labor-hours and 175 machine-hours were worked on the job. The direct labor wage rate is $14 per labor-hour. The company applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $15 per machine-hour. The total cost for the job on its job cost sheet would be: A. $2, 967 B. $2, 487 C. $2, 068 D. $5, 112
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