Question
At the beginning of the year, a company estimates the following manufacturing costs for the next period: Direct labor $528,000 Direct materials $180,000 Factory overhead
At the beginning of the year, a company estimates the following manufacturing costs for the next period:
Direct labor | $528,000 |
Direct materials | $180,000 |
Factory overhead | $125,000 |
Required:
1. Compute its predetermined overhead rate as a percent of direct labor.
2. Compute its overhead cost as a percent of direct materials.
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Horngrens Financial and Managerial Accounting
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
5th edition
9780133851281, 013385129x, 9780134077321, 133866297, 133851281, 9780133851298, 134077326, 978-0133866292
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