Martha is under a federal investigation for alleged insider trading. She shreds correspondence center to the investigation and a
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Answer:
predetermined overhead rate: 14.51 dollars per labor hour
applied overhead at 18,500 hours: 268,435 dollars
Explanation:
we distribute the expected overhead over the cost dirver. In this case direct labor hour:
cost driver: labor hours:
labor cost: 231,322 / 12.71 labor rate = 18,200 labor hours
<u>expected overhead:</u>
depreciaiton 53,500
supervisor 135,000
supplies 42,900
property tax 32,750
total overhead 264,150
overhead rate: 264,150 / 18,200 = 14,51373626373626 = 14.51/hr.
applied: 18,500 x 14.51 = 268.435