Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
17. The Company uses predetermined overhead rates to apply manufacturing overhead to jobs. The predetermined overhead rate is based on labor cost Dept. A and
17. The Company uses predetermined overhead rates to apply manufacturing overhead to jobs. The predetermined overhead rate is based on labor cost Dept. A and on machine hours in Dept. R. At the beginning of the year the made the following estimates: Dept A Dept B $30,000 $40,000 Direct labor cost Manufacturing overhead Direct labor hours 10,000 Machine hours what predetermined overhead rates would be used in Dept A and Dept B, respectively? A) 50% and $8.00 B) 50% and $5.00 C) $15 and 110% Do 200% and $5.00 CALCULATION 18. Kelsh Company uses a predetermined overhead rate based on machine hours to apply manufacturing overhead to jobs. The company has provided the following estimated costs for next year: $10,000 Direct materials Direct labor 30.000 40,000 Sales commissions 20,000 Salary of production supervisor 4,000 Indirect materials 8,000 Advertising expense 10,000 Rent on factory equipment Kelsh estimates that 5,000 direct labor hours and 10,000 machine hours will be worked during the year. The predetermined overhead rate per hour will be: A) $6.80. B) $6.40. C) $3.40. D) $8.20. CALCULATION
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started