Question

$7.65 $12.00 O $9.20 Question 17 5 pts Dearden Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $148,000, variable manufacturing overhead of $3.75 per machine- hour, and 50,000 machine-hours. The actual usage of machine hours was 52,100. The predetermined overhead rate per machine hour is closest to: $6,59 O $6.71 $9.67 O $2.96 Question 18 5 pts Period costs are reported on the balance sheet before goods are sold and on the income statement after goods are sold. O True False

Answer 1

Answer 17

Calculation of predetermined overhead rate

Estimated Manufacturing overhead cost= Fixed cost+ (Variable cost per hour* Estimated Machine Hours)

= $148000+ ($3.75*50000)

= $ 335500

Predetermined Overhead rate= Estimated manufacturing overhead cost/ Estimated Machine Hours

= $335500/ $50000= $6.71

So the correct answer is Option B

Answer 18

False

Part of the statement is wrong as Period Costs are never shown in Balance Sheet as there nature is not of Capital Expenditure.