A company has an overhead application rate of 120% of direct labor costs. How much overhead would be allocated to a O $6,000 O $25,000 O $36,000 O $187.500 O $360,000 Question 10 O.K. Company uses a job order cost accounting system and allocates its overhead on the basis of direct labor costs. O.K. expects to incur $1,100,000 of overhead during the next period and expects to use 50,000 labor hours at a cost of $10.00 per hour. What is O.K. Company's overhead application rate?

A company has an overhead application rate of 120% of direct labor costs. How much overhead would be allocated to a O $6,000 O $25,000 O $36,000 O $187.500 O $360,000 Question 10 O.K. Company uses a job order cost accounting system and allocates its overhead on the basis of direct labor costs. O.K. expects to incur $1,100,000 of overhead during the next period and expects to use 50,000 labor hours at a cost of $10.00 per hour. What is O.K. Company's overhead application rate?

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Q1. You have been appointed as an accountant of M.K. Industries a company formed by Mr Mutiso and Mr K.Kyalo to manufacture cooking fats for sale. While reviewing the accounting records of the company, you discovered that the following transactions and events were recorded during the year ending 30 September 1993. (i) Stock was acquired at sh.29 per unit, throughout the current year, until the last purchase (which was still in raw materials state at the end of the year) was made in September 1993. At that time the company was able to negotiate a special price and acquired 10,000 units at sh.25 per unit. The purchase was recorded as follows: Dr. Stock Shs.290,000 Ст. Cash Shs. 250,000 Ст. Revenue Shs. 40,000 (ii) On 2 January 1993 a new truck was purchased for sh.270, 000. The truck had an estimated useful life of five years and a residual value of sh.20, 000. Depreciation expenses for the year (straight-line method) was recorded as follows to avoid reporting a net operating loss: Dr.…
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