Kalp Corporation Has Two Production Departments, Machining and Finishing

question 262

Multiple Choice

Kalp Corporation has two production departments, Machining and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Machining Department's predetermined overhead rate is based on machine-hours and the Finishing 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:
During the current month the company started and finished Job K928. The following data were recorded for this job:

-The predetermined overhead rate for the Machining Department is closest to:

• A) $7.20 per machine-hour
• B) $9.00 per machine-hour
• C) $21.38 per machine-hour
• D) $1.80 per machine-hour

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Definitions:

Data Period

A data period is a specific span of time during which data is collected, analyzed, or reported for the purpose of study or analysis.

Delta Forms

The shape and structure of a landform created at the mouth of a river where it deposits sediment into another body of water, commonly resembling a triangle.

Pile Up Sediment

The accumulation of sediments in a particular area, often due to transportation processes like water or wind flow.

Units of Measure

Standardized quantities used to quantify physical properties such as length, mass, volume, and temperature.