Jurica Corporation Has Two Production Departments, Forming and Customizing

question 289

Multiple Choice

Jurica Corporation has two production departments, Forming and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Forming 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:

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

• A) $4.55 per direct labor-hour
• B) $3.90 per direct labor-hour
• C) $10.50 per direct labor-hour
• D) $14.40 per direct labor-hour

---

Definitions:

Malfeasance

The performance by a public official of an act that is legally unjustified, harmful, or contrary to law.

Personal-Injury Litigation

A legal process where an injured party files a lawsuit seeking compensation for damages suffered due to another's negligence.

Paralegal

A person trained in legal matters who performs tasks requiring knowledge of the law and legal procedures, under the supervision of an attorney.

Membranous Urethra

The part of the urethra in males that passes through the pelvic floor and is surrounded by the external urethral sphincter.