The companyuses a job-order costing system and predetermined overhead rates to apply manufacturingoverhead cost to jobs. The predetermined overhead rate in the Preparation Department isbased on machine-hours, and the rate in the Fabrication Department is based on directmaterials cost. At the beginning of the year, the company’s management made the followingestimates for the year:Job-C was started on April 1 and completed on May 12. The company’s cost records showthe following information concerning the job:Required:
a) Compute the predetermined overhead rate used during the year in the Preparation andFabrication Departments.
b) Compute the total overhead cost applied to Job-C.
