Rupe Company has two departments: Machining and Assembly. The following estimates are for the coming year:
-A predetermined manufacturing cost driver rate for the Machining Department based on the number of machine hours in that department is:
A)$ 4 per machine hour.
B)$10 per machine hour.
C)$20 per machine hour.
D)$40 per direct labor hour.

Question

Rupe Company has two departments: Machining and Assembly. The following estimates are for the coming year: 
-A predetermined manufacturing cost driver rate for the Machining Department based on the number of machine hours in that department is:
A)$ 4 per machine hour. 
B)$10 per machine hour. 
C)$20 per machine hour. 
D)$40 per direct labor hour.

Quizplus · Accepted Answer

A)$4 per machine hour = $600,000/150,000 mh

Rupe Company Has Two Departments: Machining and Assembly