Question
A manufacturer estimates that it will incur variable indirect costs for the month of October of Rs 70,000 and Rs 30,000 of fixed costs.The company
A manufacturer estimates that it will incur variable indirect costs for the month of October of Rs 70,000 and Rs 30,000 of fixed costs.The company uses direct labor hours to calculate the predetermined overhead rate and predicted that 3,000 direct labor hours would be used in October.Actual direct labor hours amounted to 3,200.
Required:(A) What is the variable predetermined indirect rate for October? (B) What is the fixed predetermined indirect cost rate for October? (C) What is the total allocation rate per direct labor hour for October?
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
Managerial Accounting
Authors: Wendy M. Tietz, Louis Beaubien, Karen W. Braun
3rd Canadian edition
