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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 $25,500. Additional estimated information is given below. Direct materials cost per unit Direct labor cost per unit Number of units Totes $32 Satchels $43 $51 $65 530 370 Calculate the predetermined overhead allocation rate. (Round your answer to two decimal places.) OA. 94.34% OB. 94.31% OC. 49.92% OD. 1.49%

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 $25,500. Additional estimated information is given below. Direct materials cost per unit Direct labor cost per unit Number of units Totes $32 Satchels $43 $51 $65 530 370 Calculate the predetermined overhead allocation rate. (Round your answer to two decimal places.) OA. 94.34% OB. 94.31% OC. 49.92% OD. 1.49%

FINANCIAL ACCOUNTING
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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不 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 $25,500. Additional estimated information is given below. Direct materials cost per unit Direct labor cost per unit Number of units Totes $32 $51 530 Satchels $43 $65 370 Calculate the predetermined overhead allocation rate. (Round your answer to two decimal places.) OA. 94.34% OB. 94.31% O C. 49.92% OD. 1.49%
Transcribed Image Text:不 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 $25,500. Additional estimated information is given below. Direct materials cost per unit Direct labor cost per unit Number of units Totes $32 $51 530 Satchels $43 $65 370 Calculate the predetermined overhead allocation rate. (Round your answer to two decimal places.) OA. 94.34% OB. 94.31% O C. 49.92% OD. 1.49%
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