Question
A company has two manufacturing departments Shaping and Painting. The company uses job-order costing and provides the following estimated overhead costs for the year 2021:
A company has two manufacturing departments Shaping and Painting. The company uses job-order costing and provides the following estimated overhead costs for the year 2021:
Beginning-of-period estimates Shaping Painting Total Estimated total fixed manufacturing overhead $100,000 $60,000 $160,000 Estimated variable manufacturing overhead per labor hour $8.20 $32.30 Estimated total direct labor hour use 5,000 2,000 7,000
The company uses a single, company-wide predetermined overhead rate to allocate overhead to jobs based on direct labor hours. What is the pre-determined overhead rate for 2021? (Round intermediate calculations and your final answer to the nearest dollar and cents.)
A company has two manufacturing departments Shaping and Painting. The company uses job-order costing and provides the following estimated overhead costs for the year 2021:
| Beginning-of-period estimates | Shaping | Painting | Total |
| Estimated total fixed manufacturing overhead | $100,000 | $60,000 | $160,000 |
| Estimated variable manufacturing overhead per labor hour | $8.20 | $32.30 | |
| Estimated total direct labor hour use | 5,000 | 2,000 | 7,000 |
The company uses a single, company-wide predetermined overhead rate to allocate overhead to jobs based on direct labor hours. What is the pre-determined overhead rate for 2021? (Round intermediate calculations and your final answer to the nearest dollar and cents.)
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Hospitality Financial Accounting
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Agnes L.
2nd Edition
9780470598092, 470083603, 978-0470083604
