Answer:
$6.7 per direct labor hour
Explanation:
Given:
Direct labor-hours = 20,000
Fixed manufacturing overhead cost = $94,000
variable manufacturing overhead = $2.00 per direct labor-hour
Actual manufacturing overhead cost for the year = $123,900
Actual total direct labor = 21,000 hours
Now,
Total Estimated Manufacturing Overhead
= 94000 + ( 2 × 20000 )
= $134,000
And,
Predetremined Overhead Rate =
or
Predetremined Overhead Rate =
or
Predetremined Overhead Rate = $6.7 per direct labor hour
Answer:
Indirect costs incurred in a manufacturing environment that cannot be traced directly to a product are treated as Product costs and expenses when the goods are sold, Option D.
Explanation:
Indirect costs are also manufacturing overheads which cannot be directly put on the product but they have to be allocated in some way. So, these are treated as 'product costs' and 'expenses' when the goods are sold. They are not period costs as per Option A and option C. Option B which says that it is product costs when incurred, which is also incorrect.
Examples of indirect costs can be accounting and legal expenses, rent, telephone expenses, salaries of administrative.
Direct costs includes the costs of direct 'labor', materials and commissions.
First to get the answer your self all you need to do is divide 7 in to how many hours then boom you got the answer
The right answer for the question that is being asked and shown above is that: "<span>Brian has some understanding of budgeting. However, a budget does not create more money each month. It just helps him use his money better." That is the best answer among the choices.</span>