Bistro Events applies overhead to catering jobs based on direct labor hours. At the start of the year, the company estimated its overhead costs would be $480,000 and estimated 32,000 direct labor hours. By the end of the year, actual overhead costs totaled $510,000, and actual direct labor hours used were 38,000, What is the predetermined overhead rate?

Bistro Events applies overhead to catering jobs based on direct labor hours. At the start of the year, the company estimated its overhead costs would be $480,000 and estimated 32,000 direct labor hours. By the end of the year, actual overhead costs totaled $510,000, and actual direct labor hours used were 38,000, What is the predetermined overhead rate?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 4E: The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the...

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