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Which of the following would most accurately reflect the the pre-determined allocation rate for the machining department and finishing department and the total overhead [indirect]
Which of the following would most accurately reflect the the pre-determined allocation rate for the machining department and finishing department and the total overhead [indirect] cost allocated to Job no 806 :
a) $50 per maching hour; 200% of direct labour cost; $27 750 overhead allocated
b) $6 500 machining; $2 500 finishing; $9 000 overhead allocated
c) $200 per machine hour; 50% of direct labour cost; $27 750 overhead allocated
d) $50 per machine hour; 200% of direct labour cost; $9 000 overhead allocated
William Felix \& Sons uses an estimated overhead rate for allocating production overhead to job orders. The rate is on a machine hour basis for the machining department and on a direct labour cost basis for the finishing department. The entity estimated the following for the current year: During January, the cost record for job order no. 806 shows the following: Total costs and machine hours were as follows for the current yearStep by Step Solution
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