Question
In December 2012, Infovision established its predetermined overhead rate for movies produced during year 2013 by using the following cost predictions: overhead costs, $1,974,000, and
In December 2012, Infovision established its predetermined overhead rate for movies produced during year 2013 by using the following cost predictions: overhead costs, $1,974,000, and direct labor costs, $470,000. At year end 2013, the companys records show that actual overhead costs for the year are $2,269,100. Actual direct labor cost had been assigned to jobs as follows. |
Movies completed and released | $ | 500,000 |
Movies still in production | 43,000 | |
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Total actual direct labor cost | $ | 543,000 |
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1. | Determine the predetermined overhead rate for year 2013.
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