The Collins Company uses predetermined overhead rates to apply manufacturing overhead to jobs. The predetermined overhead rate is based on labour cost in Dept. A and machine hours in Dept. B. At the beginning of the year, the company made the following estimates: Dept A Dept B Direct Labour cost £65,000 £42,000 Manufacturing overhead 91,000 48,000 Direct Labour hours 8,000 10,000 Machine hours 3,000 12,000 What predetermined overhead rates would be used in Dept A and Dept B, respectively?
The Collins Company uses predetermined overhead rates to apply manufacturing overhead to jobs. The predetermined overhead rate is based on labour cost in Dept. A and machine hours in Dept. B. At the beginning of the year, the company made the following estimates: Dept A Dept B Direct Labour cost £65,000 £42,000 Manufacturing overhead 91,000 48,000 Direct Labour hours 8,000 10,000 Machine hours 3,000 12,000 What predetermined overhead rates would be used in Dept A and Dept B, respectively?
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 8PA: Coops Stoops estimated its annual overhead to be $85,000 and based its predetermined overhead rate...
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The Collins Company uses predetermined
| Dept A | Dept B | |
| Direct Labour cost | £65,000 | £42,000 |
| Manufacturing overhead | 91,000 | 48,000 |
| Direct Labour hours | 8,000 | 10,000 |
| Machine hours | 3,000 | 12,000 |
What predetermined overhead rates would be used in Dept A and Dept B, respectively?
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