Zephyros Corporation had estimated manufacturing overhead costs for the coming year to be $303,000. The total estimated direct labor hours and machine hours for the coming year are 7000 and 12,000, respectively. Manufacturing overhead costs are allocated based on direct labor hours. What is the predetermined overhead allocation rate? (Round your answer to the nearest cent.)
A) $25.25 per machine hour
B) $15.95 per direct labor hour
C) $43.29 per direct labor hour
D) $1.71 per machine hour
C) $43.29 per direct labor hour
Explanation: Predetermined overhead allocation rate = Total estimated overhead costs / Total estimated quantity of the overhead allocation base
Predetermined overhead allocation rate = $303,000 / 7000 labor hours = $43.29 per labor hour
You might also like to view...
Describe the process by which a secured creditor establishes his or her rights to collateral securing a first-priority position.
What will be an ideal response?
Seashell Company is considered "very liquid" for the year ended December 31, 2016 . This means that Seashell
a. has a small quick ratio. b. must decrease its liquidity in order to appear favorable to stockholders. c. should sell plant assets in order to remain in business. d. is able to pay its current debts using its current assets.
Which of the following is not expressed in terms of a percentage?
a. Return on equity b. Debt to equity ratio c. Current ratio d. Profit margin
Answer the following statements true (T) or false (F)
1. Asking the receiver if they have any questions is a good way to check if the message has been received. 2. There is a difference between listening and active listening. 3. Before you can respond appropriately to a message, you need to understand what the person needs from you. 4. “You will make it!” is an example of a probing response.