A company allocates overheads based on direct labor hours. The total overhead cost is $10,000, and the total direct labor hours are 500. What is the overhead rate per direct labor hour? Options: (a) $20 (b) $25 (c) $15 (d) $30

A company allocates overheads based on direct labor hours. The total overhead cost is $10,000, and the total direct labor hours are 500. What is the overhead rate per direct labor hour? Options: (a) $20 (b) $25 (c) $15 (d) $30

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 1EA: Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor...

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A company allocates overheads based on direct
labor hours. The total overhead cost is $10,000,
and the total direct labor hours are 500. What is
the overhead rate per direct labor hour?
Options:
(a) $20
(b) $25
(c) $15
(d) $30

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