Contribution margin: $56,000
Net Operating Income: $ 20,000
$5.00 and 200%
Feedback: The predetermined overhead rates are determined as follows.Machining Department: Predetermined overhead rate = Estimated overhead cost ÷ Estimated machine hours Predetermined overhead rate = $25,000 ÷ 5,000 MHs = $5.00 per MHAssembly Department: Predetermined overhead rate = Estimated overhead cost ÷ Estimated direct labor costPredetermined overhead rate = $30,000 ÷ $15,000 = 200%
overapplied by $50,000
The cost of leasing a machine on a monthly basis that automatically tests hard disk drives before they are installed in computers.
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