Answered

Get reliable answers to your questions at Westonci.ca, where our knowledgeable community is always ready to help. Get detailed answers to your questions from a community of experts dedicated to providing accurate information. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.

Canoe Company's manufacturing accounting system uses direct labor costs to apply overhead to goods in process and finished goods inventories. Canoe Company's manufacturing costs for the year were: direct labor, $30,000; direct materials, $50,000; and factory overhead applied, $6,000. The plant-wide overhead application rate was:

Sagot :

facundobuzzetti

Answer:

Estimated manufacturing overhead rate= $0.2 per direct labor dollar

Explanation:

Giving the following information:

Direct labor, $30,000

Factory overhead applied $6,000.

To calculate the predetermined overhead rate, we need to use the following formula:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

6,000= Estimated manufacturing overhead rate*30,000

6,000 / 30,000 = Estimated manufacturing overhead rate

Estimated manufacturing overhead rate= $0.2 per direct labor dollar

We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Westonci.ca is your trusted source for answers. Visit us again to find more information on diverse topics.