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deloria coporation has two production departnments, forming an assembly. the company uses a job-order costing system and computes predetermines overhead rate

deloria coporation has two production departnments, forming an assembly. the company uses a job-order costing system and computes predetermines overhead rate

DeloriaCorporationuses a job-order costing system and has two production departments that form an assembly. The company computes a predetermined overhead rate to allocate manufacturing overhead costs to its products.Job-order costing is a costing system used by companies to allocate manufacturing costs to specific jobs or orders. In the case of Deloria Corporation, they have two productiondepartmentsthat work together to complete the assembly of their products. To allocate manufacturing overhead costs to these jobs or orders, Deloria Corporation computes a predetermined overhead rate. This rate is calculated by dividing the estimated total manufacturing overhead costs for a specific period by an allocation base, such as direct labor hours or machine hours. For example, let's say Deloria Corporation estimates that it will incur $200,000 in manufacturing overhead costs for the year. They also estimate that they will have 10,000direct laborhours during the year.By dividing the estimated manufacturing overhead costs by the estimated direct labor hours ($200,000 / 10,000), they can determine a predetermined overheadrateof $20 per direct labor hour. Once the predetermined overhead rate is established, Deloria Corporation can allocate manufacturing overhead costs to its products based on the actual direct labor hours used in each job or order. For instance, if a specific job requires 5 direct labor hours, then $100 ($20 x 5) ofmanufacturingoverhead costs would be allocated to that job.To know more aboutCorporationvisit:brainly.com/question/12983829#SPJ11...

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