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3 years ago

Company Dept. A Dept. B

Business

1 answer:

Ronch [10]3 years ago

7 0

The pre-determined overhead rate per direct labor dollar for Dept. B is 1.35.

<h3>What is manufacturing overhead?</h3>

Manufacturing overhead costs are the cost associated with running a manufacturing facility.

Examples of factory overhead include

indirect labor costs
factory rent
depreciation of plants and machinery

Sales and administrative cost

<h3>What is direct labour cost?</h3>

The direct labour cost is the cost directly involved in the production of goods and services.

<h3>What is the pre-determined overhead rate per direct labor dollar for Dept. B?</h3>

The pre-determined overhead rate per direct labor dollar for Dept. B = Estimated manufacturing overhead / Estimated direct labor cost

= $162,000 / $120,000 = 1.35

To learn more about overhead costs, please check: brainly.com/question/8054214

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