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denis23 [38]
3 years ago
13

Darrow Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last

year, the Corporation worked 10,000 direct labor-hours and incurred $80,000 of actual manufacturing overhead cost.
a. If overhead was underapplied by $2,000, the predetermined overhead rate for the Corporation for the year must have been _______.
Business
1 answer:
crimeas [40]3 years ago
4 0

Answer:

$7.8 per direct labor hour      

Explanation:

The formula to compute the predetermined overhead rate is shown below:

Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated direct labor-hours)

where,

Total estimated manufacturing overhead = Actual manufacturing overhead - under applied overhead

= $80,000 - $2,000

= $78,000

And, the estimated direct labor hours is 10,000

So, the predetermined overhead rate is

= $78,000 ÷ 10,000

= $7.8 per direct labor hour              

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Answer:

$13,296

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Answer:

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Andrews Company manufactures a line of office chairs. Each chair takes $14 of direct materials and uses 1.9 direct labor hours a
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Answer:

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Explanation:

Giving the following information:

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