What predetermined overhead rates would be used


The Watts Company uses predetermined overhead rates to apply manufacturing overhead to jobs. The predetermined overhead rate is based on labor cost in Dept. A and on machine-hours in Dept. B. At the beginning of the year, the company made the following estimates:

Dept A Dept B
Direct labor cost.................$30,000 $40,000
Manufacturing overhead............$60,000 $50,000
direct labor hours................ 6,000 8,000
machine hours..................... 2,000 10,000

What predetermined overhead rates would be used in Dept A and Dept B, respectively?

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: What predetermined overhead rates would be used
Reference No:- TGS087334

Expected delivery within 24 Hours