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den301095 [7]
3 years ago
8

Bob's Boats uses job costing. They use direct labor hours as a basis for allocating overhead costs to jobs. Given the following

information, calculate Bob's predetermined overhead rate. Input your answer without dollar signs or commas. Round your answer to two decimal places.
Actual Overhead Expense $104038
Estimated (Budgeted) Overhead Expense $110917
Actual Direct Labor Hours $10436
Estimated Direct Labor Hours $11198
Business
1 answer:
Anton [14]3 years ago
8 0

Answer:

Bob's predetermined overhead rate = 9.91

Explanation:

Calculation for predetermined overhead rate

Predetermined overhead rate = Estimated (Budgeted) Overhead Expense / Estimated Direct Labor Hours

Predetermined overhead rate = 110917 / 11198

Predetermined overhead rate = 110.917 / 11.198

Predetermined overhead rate = 9.91

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Explanation:

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Illinois Company is attempting to develop the cost function for repair costs. The following past data are available: Machine Hou
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Answer:

$480

Explanation:

Data provided in the question:

Machine              Hours Repair Costs

2,400                       $6,385

1,200                        $3,480

2,000                       $5,285

3,400                       $8,980

Now,

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Highest             3,400                       $8,980

Lowest              1,200                        $3,480

Difference        2,200                       $5,500

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= $2.5

Total cost at high level = $8,980

Machine hours highest level = 3,400

Also,

Total cost at high level = Fixed cost + Variable cost at highest level

or

$8,980 = Fixed cost + [ $2.5 × 3,400 ]

or

Fixed cost = $8,980 -  [ $2.5 × 3,400 ]

= $8,980 - $8,500

= $480

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