Question
Assume a company had no jobs in progress at the beginning of July and no beginning inventories. It started and completed only 2 jobs during
Assume a company had no jobs in progress at the beginning of July and no beginning inventories. It started and completed only 2 jobs during July. Job Y and Job Z. The company uses a plantwide predetermined overhead rate based on direct labor - hours. The following additional information from the month of July is available for the company as a whole and for jobs y and job z.
Estimated total fixed manufacturing overhead = $15,000
estimated variable manufacturing overhead per direct labor hour = $2.00
estimated direct labor hours to be worked = $2,000
Total actual manufacturing overhead costs incurred = $12,800.
Direct Materials for job y = 13,000
Direct Materials for job z = 8,000
direct labor costs for job y = 21,000
direct labor costs for job z = 7,500
actual direct labor hours worked fr job y= 1,400
actual direct labor hours worked for job z = 500
what is the plantwide predetermined overhead rate?
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