Albert Tubes Co. uses a predetermined overhead rate to apply manufacturing overhead to jobs. This year,...
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Albert Tubes Co. uses a predetermined overhead rate to apply manufacturing overhead to jobs. This year, the company worked 10000 actual direct labor hours and used 10000 machine hours. The total overhead cost incurred was $61000. The company had estimated that it would work 4000 direct labor hours, and use 7000 machine hours, during the year. The allocation rate based on direct labour hours is $12 per direct labour hour and the allocation rate based on machine hours is $8 per machine hour. How much overhead was estimated? Albert Tubes Co. uses a predetermined overhead rate to apply manufacturing overhead to jobs. This year, the company worked 10000 actual direct labor hours and used 10000 machine hours. The total overhead cost incurred was $61000. The company had estimated that it would work 4000 direct labor hours, and use 7000 machine hours, during the year. The allocation rate based on direct labour hours is $12 per direct labour hour and the allocation rate based on machine hours is $8 per machine hour. How much overhead was estimated?
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Related Book For
Cost Management Accounting and Control
ISBN: 978-0324559675
6th Edition
Authors: Don R. Hansen, Maryanne M. Mowen, Liming Guan
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