Bella, Inc. manufactures two kinds of bags-totes and satchels. The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the allocation base. Estimated overhead costs for the year are $26,000. Additional estimated information is given below. Totes Direct materials cost per unit $30 Direct labor cost per unit $52 Number of units 510 Calculate the predetermined overhead allocation rate. (Round your answer to two decimal places.) OA. 86.15% OB. 1.68% OC. 98.04% OD. 53.15% Satchels $45 $64 350 CIT
Bella, Inc. manufactures two kinds of bags-totes and satchels. The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the allocation base. Estimated overhead costs for the year are $26,000. Additional estimated information is given below. Totes Direct materials cost per unit $30 Direct labor cost per unit $52 Number of units 510 Calculate the predetermined overhead allocation rate. (Round your answer to two decimal places.) OA. 86.15% OB. 1.68% OC. 98.04% OD. 53.15% Satchels $45 $64 350 CIT
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 4EB: Cozy, Inc., manufactures small and large blankets. It estimates $950,000 in overhead during the...
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![Bella, Inc. manufactures two kinds of bags-totes and satchels. The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the allocation
base. Estimated overhead costs for the year are $26,000. Additional estimated information is given below.
Totes
Direct materials cost per unit
$30
Direct labor cost per unit
$52
Number of units
510
Calculate the predetermined overhead allocation rate. (Round your answer to two decimal places.)
A. 86.15%
OB. 1.68%
OC. 98.04%
OD. 53.15%
Satchels
$45
$64
350](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F24d9c37e-0177-4f53-8c88-98be93464cef%2F8bd75353-ce66-4cc0-af77-c97f6cb399b7%2F8anf0xd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Bella, Inc. manufactures two kinds of bags-totes and satchels. The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the allocation
base. Estimated overhead costs for the year are $26,000. Additional estimated information is given below.
Totes
Direct materials cost per unit
$30
Direct labor cost per unit
$52
Number of units
510
Calculate the predetermined overhead allocation rate. (Round your answer to two decimal places.)
A. 86.15%
OB. 1.68%
OC. 98.04%
OD. 53.15%
Satchels
$45
$64
350
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