Business, 29.01.2021 16:40, chazpooh208

Fatzinger Corporation has two production departments, Milling and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Milling Department’s predetermined overhead rate is based on machine-hours and the Assembly 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: Milling Assembly
Machine—hours 20,000 14,000
Direct labor—hours 2,000 7,000
Total fixed manufacturing Overhead cost $137,000 $57,400
Variable manufacturing overhead per machine—hour $2.30
Variable manufacturing overhead per direct labor—hour $3.40

The predetermined overhead rate for the Assembly Department is closest to:

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Fatzinger Corporation has two production departments, Milling and Assembly. The company uses a job-o...