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11:06 Optional assignment questions DOCX - 40 KB Question B-replacing question 3 on midterm Clarion Computing Inc. uses predetermined overhead rates in both of its
11:06 Optional assignment questions DOCX - 40 KB Question B-replacing question 3 on midterm Clarion Computing Inc. uses predetermined overhead rates in both of its departments For Technical support, the rate is based on labour cost; for Data Processing the rate is based on hours of computer time. At the beginning of the most recently completed year, the company made the following estimates Technical Data Support Processing Direct labour cost 195,000 $ 80.000 Manufacturing overhead 156,000 $ 45,000 Direct labour hours 3.250 9,000 Hours of computer time 3.000 15,000 4 3 Required: a) Calculate the predetermined overhead rates to be used in cach of the Technical Support and Data Processing departments b) Brandon Inc, a new client was obtained during the year. Data Processing invoiced Brandon for $200 in direct labour costs for employees and 60 hours of computer time was used for data processing, Technical support billed for SSO direct labour costs and used 10 hours of computer time for technical support. Calculate the total amount billed to Brandon Inc. by Clarion Computing Inc c) Why would Technical Support choose to use direct labour cost instead of direct labour bours for allocating its overhead costs to customers? 1 Open Word 2
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