Apex Industries, Inc. computes its predetermined overhead rate annually based on direct labor-hours. At the beginning of the year, the company estimated that its total manufacturing overhead would be $800,000, and the total direct labor would be 50,000 hours. The actual total manufacturing overhead for the year was $940,000, and the total direct labor hours worked was 52,000 hours. Compute the company's predetermined overhead rate for the year.

Apex Industries, Inc. computes its predetermined overhead rate annually based on direct labor-hours. At the beginning of the year, the company estimated that its total manufacturing overhead would be $800,000, and the total direct labor would be 50,000 hours. The actual total manufacturing overhead for the year was $940,000, and the total direct labor hours worked was 52,000 hours. Compute the company's predetermined overhead rate for the year.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 23Q: If a factory operates at 100% of capacity one month, 90% of capacity the next month, and 105% of...

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