The Silver Corporation Uses a Predetermined Overhead Rate to Apply

question 144

Multiple Choice

The Silver Corporation uses a predetermined overhead rate to apply manufacturing overhead to jobs. The predetermined overhead rate is based on labor cost in Dept. A and on machine-hours in Dept. B. At the beginning of the year, the Corporation made the following estimates: What predetermined overhead rates would be used in Dept. A and Dept. B, respectively?

• A) 67% and $3.00
• B) 150% and $5.00
• C) 150% and $3.00
• D) 67% and $5.00

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