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) $2.60
B) $4.70
C) $6.05
D) $2.10

Departmental Predetermined Overhead Rates

Overhead rates set for specific departments based on estimated costs and activities, used to allocate overhead costs more accurately to products.

Machine-Hours

refers to the total time that production equipment is operated during a specific period, used as a basis for allocating manufacturing overhead.

Assembly Department

A segment within a manufacturing facility where parts are put together to form a finished product.