Asked by Riley Bruns on Jun 25, 2024
Verified
If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the predetermined overhead rate would be closest to:
A) $38.80 per DLH
B) $36.95 per DLH
C) $97.10 per DLH
D) $107.88 per DLH
Direct Labor-Hours
A measure of the total hours worked directly on manufacturing goods or providing services, used in costing and operational efficiency analysis.
- Determine pre-established overhead rates in conventional costing methodologies.
Verified Answer
GC
Gracie CollinsJun 30, 2024
Final Answer :
D
Explanation :
Predetermined overhead rate = Estimated total overhead ÷ Total direct labor-hours
= $1,283,805 ÷ 11,900 DLHs = $107.88 per DLH (rounded)
= $1,283,805 ÷ 11,900 DLHs = $107.88 per DLH (rounded)
Learning Objectives
- Determine pre-established overhead rates in conventional costing methodologies.