Apple Valley Corporation uses a job order cost system and has two production departments, A and B. Budgeted manufacturing costs for the year are:
The actual material and labor costs charged to Job #432 are as follows: Apple Valley applies manufacturing overhead costs to jobs on the basis of direct labor cost using departmental rates determined at the beginning of the year.
-For Department A,the manufacturing overhead cost driver rate is:
A)33% of direct labor costs.
B)66% of direct labor costs.
C)300% of direct labor costs.
D)None of the above is correct.

Question

Apple Valley Corporation uses a job order cost system and has two production departments, A and B. Budgeted manufacturing costs for the year are: 
The actual material and labor costs charged to Job #432 are as follows:  Apple Valley applies manufacturing overhead costs to jobs on the basis of direct labor cost using departmental rates determined at the beginning of the year.
-For Department A,the manufacturing overhead cost driver rate is:
A)33% of direct labor costs. 
B)66% of direct labor costs. 
C)300% of direct labor costs. 
D)None of the above is correct.

Quizplus · Accepted Answer

C)300% = $600,000 / $200,000

Apple Valley Corporation Uses a Job Order Cost System and Has