QUESTION

# Using a company that has 2 departments, Milling Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in...

Using a company that has 2 departments, Milling & Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The milling dept bases its rate on machine hours & assembling bases its rate on direct labor hours. At the beginning of the year, the following estimates had been made:Milling: direct labor hours = 8,000, Machine-hours = 60,000, Total fixed mfg overhead cost \$390,000, variable mfg overhead per machine hour = \$2.00. Assembly: DLH = 80,000; MH = 3,000; total fixed overhead costs = \$500,000; variable mfg overhead per direct labor hour = \$3.75 please show how to compute the pre-determined overhead rate to be used in each department.

Question:Using a company that has 2 departments, Milling &amp; Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each department.The milling dept...