Question
The following information was drawn from the accounting records of Queen Manufacturing Co. Product 1 Product 2 Product 3 Direct Material Cost $25,000 $30,000 $35,000
The following information was drawn from the accounting records of Queen Manufacturing Co.
| Product 1 | Product 2 | Product 3 | |
| Direct Material Cost | $25,000 | $30,000 | $35,000 |
| Direct Labor Cost | $30,000 | $40,000 | $50,000 |
| Direct Labor Hours | 1,200 hours | 1,800 hours | 2,000 hours |
Factory overhead is estimated to be $168,000 This overhead cost is not traceable to any particular product.
If the overhead is applied on a basis of direct labor hours, what is the allocation rate per hour?____________ Round your answer by 2 decimals
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Petroleum Accounting: Principles, Procedures; And Issues
Authors: Dennis Jennings, John Brady, Rich Shappard, Craig Friou
8th Edition
0940966328, 978-0940966321
