The company uses a predetermined overhead rate to be applied to jobs. Dept A is based on direct labor hours, while Dept B on machine hours. At the beginning of the year, the company made the following estimated: + Dept A P 30,000 Det B Direct labor cost P 40,000 Manufacturing overhead 60,000 50,000 Direct labor hours 6,000 8,000 Machine hours 2,000 10,000
The company uses a predetermined overhead rate to be applied to jobs. Dept A is based on direct labor hours, while Dept B on machine hours. At the beginning of the year, the company made the following estimated: + Dept A P 30,000 Det B Direct labor cost P 40,000 Manufacturing overhead 60,000 50,000 Direct labor hours 6,000 8,000 Machine hours 2,000 10,000
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 3PA: Pocono Cement Forms expects $900,000 in overhead during the next year. It does not know whether it...
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What predetermined rate would be used in Department A?
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