The company uses a job-order costing system and

Reference no: EM13605199

The company uses a job-order costing system and predetermined overhead rates to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Preparation Department is based on machine hours, and the rate in the Fabrication Department is based on direct labor-hours. At the beginning of the year, the company's management prepared the following information for the year. All figures are estimates, except the fixed overhead and variable overhead rates, which are actual figures from last year and remain the same this year. In other words, it is machine-hours and direct labor-hours that are estimated and used with fixed overhead and variable overhead per machine-hour and per direct labor-hour in order to calculate rates for applying overhead

Reference no: EM13605199

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