Question
ABC, Inc. uses a default allocation rate based on machine hours. To allocate indirect manufacturing costs At the beginning of the year, the company made
ABC, Inc. uses a default allocation rate based on machine hours. To allocate indirect manufacturing costs At the beginning of the year, the company made the following estimates
| Total Budgeted Manufacturing Indirect Costs | $632160 |
| Budgeted indirect manufacturing overhead costs | $316080 |
| Machine-hours required to achieve budgeted production | 200000 |
During the year, job #107 was started and completed. This job required 190 machine hours, 316 direct labor hours at a total cost of $370, and direct materials totaling $300.
REQUIRED: Determine the overhead allocation rate (round your answer to two decimal points)
Answer:
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
15th edition
978-1118159644, 9781118562185, 1118159640, 1118147294, 978-1118147290
