Below is information from the budget of the M. Johnson Enterprises at the beginning of the current year: Description Estimated factory overhead Amount $120,000 Estimated direct labor hours 70,000 hours Estimated machine hours 50,000 hours $900,000 Estimated direct labor cost Actual factory overhead incurred $150,000 Calculate the predetermined overhead rate if the company uses the following as a basis: a) Direct labor hours. b) Direct labor cost. c) Machine hours.

Below is information from the budget of the M. Johnson Enterprises at the beginning of the current year: Description Estimated factory overhead Amount $120,000 Estimated direct labor hours 70,000 hours Estimated machine hours 50,000 hours $900,000 Estimated direct labor cost Actual factory overhead incurred $150,000 Calculate the predetermined overhead rate if the company uses the following as a basis: a) Direct labor hours. b) Direct labor cost. c) Machine hours.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 7EA: A company estimates its manufacturing overhead will be $750,000 for the next year. What is the...

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A company estimates its manufacturing overhead will be $840,000 for the next year. What is the predetermined overhead rate given each of the following Independent allocation bases? Budgeted direct labor hours: 90,615 Budgeted direct labor expense: $750000 Estimated machine hours: 150,000
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