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sukhopar [10]
3 years ago
5

Dallas Company uses a job order costing system. The company's executives estimated that direct labor would be $3,360,000 (240,00

0 hours at $14/hour) and that factory overhead would be $1,540,000 for the current period. At the end of the period, the records show that there had been 220,000 hours of direct labor and $1,240,000 of actual overhead costs. Using direct labor hours as a base, what was the predetermined overhead rate? (Round your answer to two decimal places.)
A) $5.17 per direct labor hour.
B) $7.00 per direct labor hour.
C) $6.42 per direct labor hour.
D) $5.84 per direct labor hour.
E) $6.25 per direct labor hour.
Business
1 answer:
mixer [17]3 years ago
6 0

Answer:

Option (C) is correct.

Explanation:

Given that,

Estimated overhead cost = $1,540,000

Estimated direct labors (in dollars) = $3,360,000

Estimated direct labor hours = 240,000

Actual overhead cost = $1,240,000

Predetermined overhead rate:

= Estimated overhead cost ÷ Estimated direct labor hours

= $1,540,000 ÷ 240,000

= $6.42 per direct labor hour

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san4es73 [151]

Answer:

A. 136.2 days

Explanation:

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Inventory turnover ratio =  Cost of goods sold ÷ average inventory

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= ($546,745 + $585,764) ÷ 2

= $566,254

And, the cost of good sold is $1,517,397

Now put these values to the above formula  

So, the answer would be equal to  

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= 2.67 times

Now, Days in inventory  = Total number of days in a year ÷ inventory turnover ratio

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= 136.70 days approx

5 0
3 years ago
Raleigh Co. has the following products in its ending inventory. Compute the lower of cost or market total for inventory applied
Flura [38]

Answer:

<u>c. $2,018.00</u>

Explanation:

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6 0
3 years ago
The CEO and his top managers have asked themselves two important​ questions: a. do customers value what the company is​ providin
Doss [256]

Answer:

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3 0
3 years ago
According to McGregor’s ________, working is as natural an activity as resting or playing, and people will work hard to achieve
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