Austin Company uses a job order cost accounting system. The company's executives estimated that direct labor would be $2,000,000 (200,000 hours at $10/hour) and that factory overhead would be $1,500,000 for the current period. Using direct labor hours as a base, what was the predetermined overhead allocation rate? Multiple Choice $7.08 per direct labor hour. $6.00 per direct labor hour. $7.50 per direct labor hour. $6.67 per direct labor hour.

Austin Company uses a job order cost accounting system. The company's executives estimated that direct labor would be $2,000,000 (200,000 hours at $10/hour) and that factory overhead would be $1,500,000 for the current period. Using direct labor hours as a base, what was the predetermined overhead allocation rate? Multiple Choice $7.08 per direct labor hour. $6.00 per direct labor hour. $7.50 per direct labor hour. $6.67 per direct labor hour.

Name: Austin Company uses a job order cost accounting system. The company's
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Description: Austin Company uses a job order cost accounting system. The company's executives estimated that direct labor would be $2,000,000 (200,000 hours at$10/hour) and that factory overhead would be $1,500,000 for the current period. Using direct labor hour

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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