Answered

Welcome to Westonci.ca, the Q&A platform where your questions are met with detailed answers from experienced experts. Join our Q&A platform and connect with professionals ready to provide precise answers to your questions in various areas. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform.

Midwest Corporation has provided the following data concerning manufacturing overhead for 2020: Two jobs were worked on during the year: Job A-101 and Job A-102. The number of direct labor-hours spent on Job A-101 and Job A-102 were 1,360 and 4,200, respectively. The actual manufacturing overhead was $72,200. What is the predetermined manufacturing overhead rate per direct labor hour for the year

Sagot :

Zviko

Answer:

$16.00

Explanation:

Predetermined manufacturing overhead rate = Budgeted Overheads ÷ Budgeted Activity

therefore,

Predetermined manufacturing overhead rate = $32,320 ÷ 2,020

                                                                            = $16.00

Applied overheads = Predetermined manufacturing overhead rate x Actual activity

therefore,

Applied overheads = $16.00 x 2,410 = $38,560

Conclusion :

Under-applied overheads = $72,200 -  $38,560

                                           = $33,640

the predetermined manufacturing overhead rate per direct labor hour for the year is  $16.00

Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Your questions are important to us at Westonci.ca. Visit again for expert answers and reliable information.