Use the Information Below to Answer the Following Question(s)

question 52

Multiple Choice

Use the information below to answer the following question(s) .
Jim's Computer Products manufactures keyboards for computers. In June, the two production departments had budgeted allocation bases of 10,000 machine hours in Department 1 and 5,000 direct manufacturing labour hours in Department 2. The budgeted manufacturing overheads for the month were $34,500 and $37,500, respectively. For Job 501, the actual costs incurred in the two departments were as follows:

Job 501 incurred 1,000 machine hours in Department 1 and 300 manufacturing labour hours in Department 2. The company uses a budgeted departmental overhead rate for applying overhead to production.
-What is the predetermined overhead rate for Department 1?

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Definitions:

Shortest Processing Time

A scheduling priority rule that sequences jobs or tasks based on the shortest time needed to complete them, aiming to minimize the overall processing time.

Processing Times

The amount of time required to complete a specific step or operation in the manufacturing or service delivery process.

Jobs Processed

The number of tasks or work items completed in a given period.

Cumulative Deviation

The sum of differences between observed and expected values, often used in quality control and process monitoring.