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The Bondi Company uses a predetermined overhead rate in applying overhead to production orders on a direct labor cost basis in Department A and on a machine hour basis in Department B. At the beginning of the year, the company made the following estimates:     Dept. A   Dept. B Direct labor cost $ 62,000     $ 42,000   Factory overhead $ 95,480     $ 47,120   Direct labor hours   6,200       9,200   Machine hours   2,200       15,200     What predetermined overhead rate would be used in Department A and Department B, respectively?   Multiple Choice a) 154% and 310%. b) 154% and $3.10. c) $1.54 and $3.10. d) $1.54 and 310%.

The Bondi Company uses a predetermined overhead rate in applying overhead to production orders on a direct labor cost basis in Department A and on a machine hour basis in Department B. At the beginning of the year, the company made the following estimates:     Dept. A   Dept. B Direct labor cost $ 62,000     $ 42,000   Factory overhead $ 95,480     $ 47,120   Direct labor hours   6,200       9,200   Machine hours   2,200       15,200     What predetermined overhead rate would be used in Department A and Department B, respectively?   Multiple Choice a) 154% and 310%. b) 154% and $3.10. c) $1.54 and $3.10. d) $1.54 and 310%.

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter26: Manufacturing Accounting: The Job Order Cost System
Section: Chapter Questions
Problem 5SEA: PREDETERMINED FACTORY OVERHEAD RATE Millerlile Enterprises calculates a predetermined factory...
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TB MC Qu. 6-55 (Algo) The Bondi Company uses a predetermined...

 

The Bondi Company uses a predetermined overhead rate in applying overhead to production orders on a direct labor cost basis in Department A and on a machine hour basis in Department B. At the beginning of the year, the company made the following estimates:
 

  Dept. A   Dept. B
Direct labor cost $ 62,000     $ 42,000  
Factory overhead $ 95,480     $ 47,120  
Direct labor hours   6,200       9,200  
Machine hours   2,200       15,200  
 


What predetermined overhead rate would be used in Department A and Department B, respectively?

 

Multiple Choice
  • a)

    154% and 310%.

  • b)

    154% and $3.10.

  • c)

    $1.54 and $3.10.

  • d)

    $1.54 and 310%.

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