A company estimated the manufacturing overhead costs for the coming year at $420,00 The total estimated direct labor hours are 15,000 hours, and the estimated machine hoi to be worked are 6,000 hours. The company allocates its manufacturing overhead co based on the direct labor hours. What is the pre-determined overhead allocation rate? a. $20 per direct labor hour b. $70 per machine hour c. $28 per machine hour d. $28 per direct labor hour

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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A company estimated the manufacturing overhead costs for the coming year at $420,00
The total estimated direct labor hours are 15,000 hours, and the estimated machine hou
to be worked are 6,000 hours. The company allocates its manufacturing overhead cos
based on the direct labor hours. What is the pre-determined overhead allocation rate?
a. $20 per direct labor hour
b. $70 per machine hour
c. $28 per machine hour
d. $28 per direct labor hour
Answer
O A
O B
OD
Transcribed Image Text:A company estimated the manufacturing overhead costs for the coming year at $420,00 The total estimated direct labor hours are 15,000 hours, and the estimated machine hou to be worked are 6,000 hours. The company allocates its manufacturing overhead cos based on the direct labor hours. What is the pre-determined overhead allocation rate? a. $20 per direct labor hour b. $70 per machine hour c. $28 per machine hour d. $28 per direct labor hour Answer O A O B OD
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