Harootunian Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours.
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Question:
Harootunian Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data:
Total machine-hours | 80,000 | |
Total fixed manufacturing overhead cost | $ | 312,000 |
Variable manufacturing overhead per machine-hour | $ | 2.10 |
Recently, Job T629 was completed with the following characteristics:
Number of units in the job | 50 | |
Total machine-hours | 200 | |
The predetermined overhead rate is closest to:
Multiple Choice
A. $8.10 per machine-hour
B. $2.10 per machine-hour
C. $3.90 per machine-hour
D. $6.00 per machine-hour
Related Book For
Managerial Accounting
ISBN: 9781260247787
17th Edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
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