hoose the single-best response (2 points each). .urnace brazing & heat treating
ID: 2572682 • Letter: H
Question
hoose the single-best response (2 points each). .urnace brazing & heat treating (C), and finishing (D). The welding department of a mining equipment manufacturing plante are welding (A), semiautomatie weiding (8), furnace brazing & heat treating mning equipment manufacturing plant consists of four centers: manual departamental overhead expenses directly to each cost center, and One cuing also done in Center B. Assume that it is possible to ano compiled last year by the plant's accounting system: Tennes directly to each cost center, and that the following data were Direct Labor Cat Center Departmental Expenses. Hours Cost Direct Material $105,000 10,000 $520,000 B $80,000 68,000 4,000 160,000 80,000 46,000 1,500 45,000 30,000 24.000 2.800 60,000 20,000 What would be the overhead rate for Cost Center A, based on the center's percentage of dir cost? # 4.09% 16.89% 6 17.% d 20.29%Explanation / Answer
Overhead rate = Total Departmental Cost for A/ Direct Labor Cost for A
= $ 105,000 / 520,000 *100
= 20.2%
Hence the correct answer is d. 20.2%
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