Author Question: Crabtree Ornaments Company uses job costing. Crabtree Ornaments Company has two departments, ... (Read 3415 times)

JGIBBSON · **on:** Jan 4, 2020

Crabtree Ornaments Company uses job costing. Crabtree Ornaments Company has two departments, Trimming and Finishing. Manufacturing overhead is allocated based on direct labour cost in the Trimming Department and direct labour hours in the Finishing Department. The following additional information is available:

Estimated amounts	Trimming Dept	Finishing Dept
Direct labour cost	$240,000	$425,000
Direct labour hours	25,000	40,000
Manufacturing overhead costs	$360,000	$280,000

Actual data for completed Job No. 650 is as follows:

Actual amounts	Trimming Dept	Finishing Dept
Direct materials requisitioned	$24,300	$49,500
Direct labour cost	$36,100	$38,500
Direct labour hours	4,400	4,000

What is the predetermined manufacturing overhead rate for the Trimming Department at Crabtree Ornaments Company?
◦ 150% of direct labour cost
◦ 100% of direct labour cost
◦ 104% of direct labour cost
◦ 67% of direct labour cost

Ashley I · **Reply #1 on:** Jan 4, 2020

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