Ardent Tools Inc. estimates that total manufacturing overhead for the year will be $620,000, and direct labor hours will be 50,000. Actual overhead was $675,000, and actual labor hours were 51,500. Compute the predetermined overhead rate (based on estimated values).

Ardent Tools Inc. estimates that total manufacturing overhead for the year will be $620,000, and direct labor hours will be 50,000. Actual overhead was $675,000, and actual labor hours were 51,500. Compute the predetermined overhead rate (based on estimated values).

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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Question

I need help finding the accurate solution to this general accounting problem with valid methods.

Ardent Tools Inc. estimates that total manufacturing overhead for
the year will be $620,000, and direct labor hours will be 50,000.
Actual overhead was $675,000, and actual labor hours were
51,500.
Compute the predetermined overhead rate (based on estimated
values).

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