Question
Gallifrey, Ltd. is a manufacturer that uses a job-order costing system. Assume Gallifrey uses a single plantwide predetermined Factory OH rate to apply overhead and
Gallifrey, Ltd. is a manufacturer that uses a job-order costing system. Assume Gallifrey uses a single plantwide predetermined Factory OH rate to apply overhead and bases their predetermined OH rate on Direct Labor hours (DLh). At the beginning of 2020, the firm made the following estimates for the upcoming year:
| Estimated Direct labor hours (DLh) | 52,000 DLh |
| Estimated Machine hours (Mh) | 31,200 Mh |
| Estimated Direct Materials Cost | $1,149,925 |
| Estimated Direct Labor Cost | $583,660 |
| Estimated total Variable Factory OH cost | $367,400 |
| Estimated total Fixed Factory OH cost | $1,821,550 |
The predetermined OH rate (rounded to 2 decimal places) for 2020 is:
| a. | $75.43 | |
| b. | $42.10 | |
| c. | $26.31 | |
| d. | $70.16 | |
| e. | $35.03 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Winning Your Audit Prepare Diligently Be Realistic Then Stand Your Ground
Authors: Holmes F. Crouch
2nd Edition
0944817319, 978-0944817315
