Question: Tomcat Inc. makes drones. It has two manufacturing departments processing and finishing. The predetermined manufacturing overhead rate is 76% of the direct materials cost for
Tomcat Inc. makes drones. It has two manufacturing departments processing and finishing. The predetermined manufacturing overhead rate is 76% of the direct materials cost for processing and $23 per machine hour for finishing. Cost per machine hour equals $4.70. The accountant has the following information available for a particular job:
Processing Finishing
Machine Hours 371 220
Direct Materials Cost $510 $406
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