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Assume a company had no jobs in progress at the beginning of July and no beginning inventories. It started and completed only two jobs during
Assume a company had no jobs in progress at the beginning of July and no beginning inventories. It started and completed only two jobs during JulyJob 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 Z:
Estimated total fixed manufacturing overhead | $ ? |
---|---|
Estimated variable manufacturing overhead per direct labor-hour | $ 1.00 |
Estimated total direct labor hours to be worked | 2,000 |
Total actual manufacturing overhead costs incurred | $ 12,800 |
Job Y | Job Z | |
---|---|---|
Direct materials | $ 13,000 | $ 8,000 |
Direct labor cost | $ 21,000 | $ 7,500 |
Actual direct labor hours worked | 1,400 | 500 |
Assuming Job Zs total job cost is $19,250, what is the plantwide predetermined overhead rate?
Multiple Choice
$8.50
$5.50
$6.50
$7.50
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