Tungsten, Inc. manufactures both normal and premium tube lights. The company allocates manufacturing overhead using a single plantwide rate with machine hours as the allocation base. Estimated overhead costs for the year are $106,000. Additional estimated information is given below.
Calculate the predetermined overhead allocation rate. (Round your answer to the nearest cent.)
A) $3.53 per direct labor hour
B) $1.66 per machine hour
C) $3.12 per machine hour
D) $0.23 per direct labor hour
D) $0.23 per direct labor hour
Explanation: Total machine hours = 30,000 + 34,000 = 64,000
Predetermined overhead allocation rate = Total estimated overhead costs / Total estimated quantity of the overhead allocation base = $106,000 / 64,000 machine hours = $1.66 per machine hour
You might also like to view...
Discuss the purpose of the UTL_MAIL package and identify at least five parameters available in the package.
What will be an ideal response?
A complex project that is managed using a top-down, bottom-up approach to network diagrams means that:
A) Management's top-down portion of the network contains the greatest detail. B) Top management does not have a basis for understanding the actual development of the project. C) The top tier summary network does not give top management the basis for understanding the actual development of the project. D) The bottom level information cannot be understood by those performing the actual work.
A criticism of Herzberg's theory is that it:
A. does not hold true for managerial jobs. B. is not simple enough for laymen to understand. C. classifies money as a hygiene factor. D. lacks validity across occupational levels.
It is ethical to ________________________
a) Plagiarise someone’s work. b) Use data from participants with their permission. c) Deceive participants and collect data through covert means. d) Name participants, places and institutions.