Claybrooks Corporation has two manufacturing departments--Casting and Assembly. The company used the following data at...
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Accounting
Claybrooks Corporation has two manufacturing departments--Casting and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates:
Casting
Assembly
Total
Estimated total machine-hours (MHs)
3,000
2,000
5,000
Estimated total fixed manufacturing overhead cost
$
17,700
$
5,800
$
23,500
Estimated variable manufacturing overhead cost per MH
$
1.50
$
2.20
Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments. The departmental predetermined overhead rate in the Assembly Department is closest to:
$5.10
$6.48
$2.20
$2.90
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