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Huffington company uses a plantwide overhead rate to apply overhead. Assume instead that the predetermined overhead rate is based on direct labor cost. At the
Huffington company uses a plantwide overhead rate to apply overhead. Assume instead that the predetermined overhead rate is based on direct labor cost. At the beginning of the year, the company made the following estimates: direct labor hours of 16,000, direct labor cost of $200,000, machine hours of 5,000, and total overhead cost of $25,000. As a percentage of direct labor cost, the company's plantwide overhead rate is:
$15.
50%
100%
12.5%
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