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Business, 08.10.2019 04:30 mhwalters

Shakespeare company has two departments: cutting and finishing. the company uses a job-order costing system and computes a predetermined overhead rate in each department. the cutting department bases its rate on machine-hours, and the finishing department bases its rate on direct labor-hours. at the beginning of the year, the company made the following estimates: cutting finishing direct labor-hours 8,100 75,000 machine-hours 64,500 1,200 total fixed manufacturing overhead cost $370,000 $405,000 variable manufacturing overhead per machine-hour $3.00 - variable manufacturing overhead per direct labor-hour - $3.75 compute the predetermined overhead rate to be used in each department.

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