Claybrooks Corporation has two manufacturing departments--Casting and Assembly. The company used the following data at...
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Accounting
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:
Casting | Assembly | Total | ||||
Estimated total machine-hours (MHs) | 3,000 | 2,000 | 5,000 | |||
Estimated total fixed manufacturing overhead cost | $ | 17,700 | $ | 5,800 | $ | 23,500 |
Estimated variable manufacturing overhead cost per MH | $ | 1.50 | $ | 2.20 |
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 Assembly Department is closest to:
$5.10 | ||
$6.48 | ||
$2.20 | ||
$2.90 |
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