Compton company uses a predetermined overhead rate in


Compton Company uses a predetermined overhead rate in applying overhead to production orders on a labor cost basis in Department A and on a machine-hours basis in Department B. At the beginning of the most recently completed year, the company made the following estimates:

                                                  Dept A Dept B

Direct Labor Cost                         $56,000                     $33,000

Manufacturing Overhead                $67,200                     $45,000

Direct Labor-Hours                        8,000                           9,000

Machine Hours                           4,000                          15,000

What predetermined overhead rate would be used in Department A and Department B, respectively?

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Financial Accounting: Compton company uses a predetermined overhead rate in
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