Asked by Kathryn Murphy on Jul 02, 2024
Odonnel Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $36,000, variable manufacturing overhead of $2.80 per direct labor-hour, and 10,000 direct labor-hours.The predetermined overhead rate is closest to:
A) $2.80 per direct labor-hour
B) $6.40 per direct labor-hour
C) $3.60 per direct labor-hour
D) $9.20 per direct labor-hour
Direct Labor-Hours
The total hours worked directly on manufacturing goods or providing services.
Manufacturing Overhead
Indirect costs related to manufacturing that do not include direct materials or direct labor.
- Determine the predetermined overhead rates for production departments, employing different criteria including machine-hours and direct labor-hours.
Learning Objectives
- Determine the predetermined overhead rates for production departments, employing different criteria including machine-hours and direct labor-hours.
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