Business, 10.03.2020 00:20 tonehasarathi
Bassett Corporation has two production departments, Milling and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Milling Department’s predetermined overhead rate is based on machine-hours and the Customizing Department’s predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Milling Customizing Machine-hours 16,000 12,000 Direct labor-hours 2,000 8,000 Total fixed manufacturing overhead cost $ 118,400 $ 87,200 Variable manufacturing overhead per machine-hour $ 2.10 Variable manufacturing overhead per direct labor-hour $ 3.30 The predetermined overhead rate for the Milling Department is closest to:
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