Delph Company uses job - order costing with a plantwide predetermined overhead rate based on machine -
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Question:
Delph Company uses joborder costing with a plantwide predetermined overhead rate based on machinehours. At the beginning of the year, the company estimated that machinehours would be required for the period's estimated level of production. It also estimated $ of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $ per machinehour.
Because Delph has two manufacturing departmentsMolding and Fabricationit is considering replacing its plantwide overhead rate with departmental rates that would also be based on machinehours. The company gathered the following information to enable calculating departmental overhead rates:
tableMolding,Fabrication,TotalMachinehours,Fixed manufacturing overhead cost,$$$
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