Answered step by step
Verified Expert Solution
Question
1 Approved Answer
LaFlame Corporation uses a job order costing system with a single plantwide predetermined overhead rate based on direct labor hours. The companys predetermined overhead rate
LaFlame Corporation uses a job order costing system with a single plantwide predetermined overhead rate based on direct labor hours. The companys predetermined overhead rate for the current year was based on the following data:
Total fixed manufacturing overhead | $ 540,000 |
Variable manufacturing overhead per direct labor hour | $ 2.80 |
Total direct labor hours | 90,000 |
LaFlames predetermined overhead rate for the upcoming year is:
a. | $8.80 per direct labor hour. | |
b. | $2.80 per direct labor hour. | |
c. | $6.00 per direct labor hour. | |
d. | $540,000 regardless of direct labor hours. |
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