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Author Question: Crabtree Ornaments Company uses job costing. Crabtree Ornaments Company has two departments, ... (Read 3418 times)

JGIBBSON

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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 amountsTrimming DeptFinishing 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 amountsTrimming DeptFinishing 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
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Marked as best answer by JGIBBSON on Jan 4, 2020

Ashley I

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Reply #1 on: Jan 4, 2020
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JGIBBSON

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Reply 2 on: Jan 4, 2020
Thanks for the timely response, appreciate it

nathang24

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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