LLX Inc. uses a predetermined overhead rate to apply manufac…

LLX Inc. uses a predetermined overhead rate to apply manufacturing overhead to jobs. The predetermined overhead rate is based on machine-hours in Department A and on labor cost in Department B. At the beginning of the year, the Corporation made the following estimates:   Department A Department B Direct labor cost $ 60,000 $ 30,000 Manufacturing overhead $ 90,000 $ 45,000 Direct labor-hours 6,000 9,000 Machine-hours 15,000 5,000 What predetermined overhead rates would be used in Department A and Department B, respectively?

Which of the following statements are true? I.   If the acti…

Which of the following statements are true? I.   If the activity level increases, then one would expect the fixed cost per unit to increase as well. II.  A fixed cost is a cost whose cost per unit varies as the activity level rises and falls.  III. A decrease in production will ordinarily result in a decrease in fixed production costs per unit.