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miss Akunina [59]
3 years ago
6

K company estimates that overhead costs for the next year will be $2,900,000 for indirect labor and $800,000 for factory utiliti

es. the company uses direct labor hours as its overhead allocation base. if 80,000 direct labor hours are planned for this next year, what is the company's plantwide overhead rate?
Business
1 answer:
Marizza181 [45]3 years ago
3 0
To compute for the overhead rate, we must take the proportion of the total indirect cost over the direct labor cost.

Overhead rate = Indirect Cost/ Direct labor cost

Total projected overhead cost = $2900000+ $800000
                                                    =$3700000
Overhead rate= $3700000/$80000
Overhead rate = 46.25The overhead rate of the K company is 46.25

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The correct option is C

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So, the one which is a cost site that is very low is the cold site as it does not support the requirements of the quicker recovery.

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The income before income taxes is 2024 understated by $1,890 and 2025 overstated by $1,890.

<h3>Income before taxes</h3>

Esquire Company journal entries

June 30, 2024

Debit Note receivable            $54,000

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($54,000 x 7% x6/12)

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Therefore the income before income taxes is 2024 understated by $1,890 and 2025 overstated by $1,890.

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