A manufacturing company allocates overheads based on direct labor hours. The total overhead cost is $15,000, and the total direct labor hours are 600. What is the overhead rate per direct labor hour? • (a) $30 • (b) $25 . (c) $35 • (d) $20
A manufacturing company allocates overheads based on direct labor hours. The total overhead cost is $15,000, and the total direct labor hours are 600. What is the overhead rate per direct labor hour? • (a) $30 • (b) $25 . (c) $35 • (d) $20
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 4TP: If a company bases its predetermined overhead rate on 100,000 machine hours, and It actually has...
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Transcribed Image Text:A manufacturing company allocates overheads based
on direct labor hours. The total overhead cost is
$15,000, and the total direct labor hours are 600.
What is the overhead rate per direct labor hour?
•
(a) $30
•
(b) $25
.
(c) $35
•
(d) $20
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