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Computing single plantwide overhead allocations rates The Oakmon Company manufactures products in two departments: Mixing and Packaging. The company allocates overhead using a single plantwide
Computing single plantwide overhead allocations rates
The Oakmon Company manufactures products in two departments: Mixing and Packaging. The company allocates overhead using a single plantwide rate with direct labor hours as the allocation base. Estimated overhead costs for the year are $810,000, and estimated direct labor hours are 360,000. In October, the company incurred 20,000 direct labor hours.
Requirements
- Compute the predetermined overhead allocation rate. Round to two decimal places
- Determine the amount of overhead allocated in October.
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