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D Question 17 William Felix & Sons uses an estimated overhead rate for allocating production overhead to job orders. The rate is on a
D Question 17 William Felix & Sons uses an estimated overhead rate for allocating production overhead to job orders. The rate is on a machine hour basis for the machining department and on a direct labour cost basis for the finishing department. The entity estimated the following for the current year: Production overhead cost Machine hours Direct labour hours Direct labour cost During January, the cost record for job order no. 806 shows the following Direct materials requisitioned Direct labour cost Direct labour hours Machine hours Machining $30 000 000 Finishing $8000 000 200 000 33 000 30 000 $900000 160 000 54000000 Machining $14000 5600 Finishing $3000 $1250 30 50 130 20 Total costs and machine hours were as follows for the current year Machining Production overhead incured Direct labour cost Machine hours $30200000 $950 000 Finishing 57900000 $3900000 220000 32000 Which of the following would most accurately reflect the the pre-determined allocation rate for the machining department and finishing department and the total overhead [indirect) cost allocated to Job no 806: O $200 per machine hour; 50% of direct labour cost: $27 750 overhead allocated O $50 per maching hour; 200% of direct labour cost; $27 750 overhead allocated O $50 per machine hour; 200% of direct labour cost: $9 000 overhead allocated O $6 500 machining: $2 500 finishing: $9 000 overhead allocated 1 pts
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