Compute the predetermined overhead rate

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Reference no: EM13834506

White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates:

	Department

	Cutting		Finishing
Direct labor-hours		6,000		30,000
Machine-hours		48,000		5,000
Total fixed manufacturing overhead cost	$	264,000	$	366,000
Variable manufacturing overhead per machine-hour	$	2.00		-
Variable manufacturing overhead per direct labor-hour		-	$	4.00

Required:
1.	Compute the predetermined overhead rate to be used in each department. (Round your answers to 2 decimal places.)

Reference no: EM13834506

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