Answered step by step
Verified Expert Solution
Question
1 Approved Answer
21-09. 6.15 Bell Inc. decided to use direct labor hours to calculate a predetermined overhead rate to allocate overhead cost to jobs. During the year,
21-09. 6.15 Bell Inc. decided to use direct labor hours to calculate a predetermined overhead rate to allocate overhead cost to jobs. During the year, the company actually incurred manufacturing overhead costs of $582,000 and 135,600 direct labor hours were worked. The company estimated that it would incur $525,100 of manufacturing overhead during the year and that 151,000 direct labor hours would be worked. Was manufacturing overhead overallocated or underallocated for the year? By how much? (Round intermediary calculations to the nearest cent.) A. $110,112 underallocated B. $56,900 underallocated C. $56,900 overallocated OD. $110,112 overallocated Healthy Food Company is considering the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the most recent year: Estimated direct labor cost Actual direct labor cost Estimated manufacturing overhead costs Actual manufacturing overhead costs Estimated direct labor hours Actual direct labor hours $500,000 $465,700 $425,400 $350,800 254,300 233,000 What would the predetermined manufacturing overhead rate be, if Healthy Food Company uses direct labor hours as the allocation base? (Round your answer to the nearest cent.) A. $1.38 per direct labor hour B. $1.83 per direct labor hour OC. $1.67 per direct labor hour D. $1.51 per direct labor hour
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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