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The Westfield Company uses predetermined overhead rates to applymanufacturing overhead to jobs. The predetermined overhead rate isbased on machine hours in Department #1 and direct labor cost inDepartment #2 and at the beginning of the year, the company madethe following estimates:

Particulars

Dept #1 (Rs.)

Dept #2 (Rs.)

Direct labor cost

20,000

15,000

Manufacturing overhead

25,000

30,000

Direct labor hours

16,000

12,000

Machine hours

5,000

1,000

What predetermined overhead rates would be used in Department #1and Department #2, respectively?

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M9797754

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