Claybrooks Corporation Has Two Manufacturing Departments--Casting and Assembly

Multiple Choice

Claybrooks Corporation has two manufacturing departments--Casting and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates: Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments. The departmental predetermined overhead rate in the Assembly Department is closest to:

A) $2.90
B) $6.48
C) $5.10
D) $2.20