Claybrooks Corporation has two manufacturing departments--Casting and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates:

-Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments.The departmental predetermined overhead rate in the Casting Department is closest to:
A) $1.50
B) $7.40
C) $5.90
D) $6.48

Question

Claybrooks Corporation has two manufacturing departments--Casting and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates:
 
-Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments.The departmental predetermined overhead rate in the Casting Department is closest to:
A) $1.50 
B) $7.40 
C) $5.90 
D) $6.48

Quizplus · Accepted Answer

Casting Department predetermined overhead rate:
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Claybrooks Corporation Has Two Manufacturing Departments--Casting and Assembly