Merati Corporation Has Two Manufacturing Departments--Forming and Assembly

question 149

Multiple Choice

Merati Corporation has two manufacturing departments--Forming and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates:
During the most recent month, the company started and completed two jobs--Job B and Job L. There were no beginning inventories. Data concerning those two jobs follow:

-Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments.The departmental predetermined overhead rate in the Assembly Department is closest to:

• A) $2.60
• B) $4.70
• C) $6.05
• D) $2.10

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