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

question 265

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 2?

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Definitions:

Labor

Pertains to work, especially manual work done for wages, and can include discussions around the workforce, employment conditions, and workers' rights.

Negotiating Partner

An entity or individual engaged in discussions aimed at reaching an agreement on a specific matter or business deal.

Change to Win

is a labor union federation aimed at revitalizing the labor movement and improving the economic status of workers by organizing them and negotiating better terms.

SEIU

Service Employees International Union, a labor union representing workers in healthcare, public service, and property services sectors, among others.