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Business, 24.03.2020 22:20 lillysiege
Garza Corporation has two production departments, Casting and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Casting Department’s predetermined overhead rate is based on machine-hours and the Customizing Department’s predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Casting Customizing Machine-hours 20,000 13,000 Direct labor-hours 1,000 7,000 Total fixed manufacturing overhead cost $ 152,000 $ 68,600 Variable manufacturing overhead per machine-hour $ 2.10 Variable manufacturing overhead per direct labor-hour $ 4.30 The predetermined overhead rate for the Casting Department is closest to: Multiple Choice $9.70 per machine-hour $7.60 per machine-hour $2.10 per machine-hour $27.71 per machine-hour
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Garza Corporation has two production departments, Casting and Customizing. The company uses a job-or...
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