AMR Corp. currently uses a firm-wide overhead application based on expected diret labor hours The following information is anticipated at the beg. of the year. Department B P 17.00/1b. 5,000 10,000 P 85,000 P 12.00/hr 7. If the firm maintains the current method, the overhead application rate is: Department A P 25.00/lb. Direct materials Direct labor hours 10,000 Machine hours Overhead Labor rate 2,000 PI15,000 P 15.00/hr а. Р 7.67.hг. b. P11.50/hr. с. Р13.33hr. d. P20.00/hr. 8. If departmental rates were adopted, what would be the rates for Departments A (based on direct labor hours) and B (based on machine hours) P 8.50 P 17.00 P 8.50 P 17.50 a. PI1.50 b. P11.50 P 57.50 P 57.50 с. d.
AMR Corp. currently uses a firm-wide overhead application based on expected diret labor hours The following information is anticipated at the beg. of the year. Department B P 17.00/1b. 5,000 10,000 P 85,000 P 12.00/hr 7. If the firm maintains the current method, the overhead application rate is: Department A P 25.00/lb. Direct materials Direct labor hours 10,000 Machine hours Overhead Labor rate 2,000 PI15,000 P 15.00/hr а. Р 7.67.hг. b. P11.50/hr. с. Р13.33hr. d. P20.00/hr. 8. If departmental rates were adopted, what would be the rates for Departments A (based on direct labor hours) and B (based on machine hours) P 8.50 P 17.00 P 8.50 P 17.50 a. PI1.50 b. P11.50 P 57.50 P 57.50 с. d.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:AMR Corp. currently uses a firm-wide overhead application based on expected direct
labor hours The following information is anticipated at the beg. of the year.
Department B
P 17.00/lb.
Department A
P 25.00/lb.
Direct materials
Direct labor hours
10,000
5,000
Machine hours
2,000
10,000
Overhead
P 85,000
P 12.00/hr
7. If the firm maintains the current method, the overhead application rate is:
PI15,000
P 15.00/hr
Labor rate
a. P 7.67/hr.
b. P11.50/hr.
c. P13.33/hr.
d. P20.00/hr.
8. If departmental rates were adopted, what would be the rates for Departments A
(based on direct labor hours) and B (based on machine hours)
B
P 8.50
P 17.00
P 8.50
P 17.50
a.
PI1.50
b.
P11.50
P 57.50
P 57.50
с.
d.
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