Almaraz Corporation has two manufacturing departments--Forming and Finishing.The company used the following data at the beginning of the year to calculate predetermined overhead rates: Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours.That predetermined manufacturing overhead rate is closest to:

Question

Almaraz Corporation has two manufacturing departments--Forming and Finishing.The company used the following data at the beginning of the year to calculate predetermined overhead rates:  Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours.That predetermined manufacturing overhead rate is closest to:

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The first step is to calculate the estimated total overhead costs in the two departments.
Forming 11ea7998_5f50_eb7c_911b_a9f9d6c8e524_TB2627_00_TB2627_00 Finishing 11ea7998_5f50_eb7d_911b_a38776fab4ad_TB2627_00_TB2627_00 The second step is to combine the estimated manufacturing overhead costs in the two departments ($49,700 + $16,500 = $66,200)to calculate the plantwide predetermined overhead rate as follow: 11ea7998_5f51_128e_911b_3772e74224ec_TB2627_00_TB2627_00

Almaraz Corporation Has Two Manufacturing Departments--Forming and Finishing