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Brown Brothers is debating the use of direct labour cost or direct labour hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the year ended December 31, 20x7. Estimated manufacturing overheads Actual manufacturing overhead costs Estimated direct labour cost Actual direct labour cost Estimated direct labour hours Actual direct labour hours $359,600 $340,000 $449,500 $441,000 248,000 242,000 Manufacturing overhead applied based on direct labour cost is? a. $348,480 b. $359,600 c. $360,000 d. $352,800

Brown Brothers is debating the use of direct labour cost or direct labour hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the year ended December 31, 20x7. Estimated manufacturing overheads Actual manufacturing overhead costs Estimated direct labour cost Actual direct labour cost Estimated direct labour hours Actual direct labour hours $359,600 $340,000 $449,500 $441,000 248,000 242,000 Manufacturing overhead applied based on direct labour cost is? a. $348,480 b. $359,600 c. $360,000 d. $352,800

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Brown Brothers is debating the use of direct labour cost or direct labour hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the year ended December 31, 20x7. Estimated manufacturing overheads Actual manufacturing overhead costs Estimated direct labour cost Actual direct labour cost Estimated direct labour hours Actual direct labour hours $359,600 $340,000 $449,500 $441,000 248,000 242,000 Manufacturing overhead applied based on direct labour cost is? a. $348,480 b. $359,600 O c. $360,000 d. $352,800
Transcribed Image Text:Brown Brothers is debating the use of direct labour cost or direct labour hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the year ended December 31, 20x7. Estimated manufacturing overheads Actual manufacturing overhead costs Estimated direct labour cost Actual direct labour cost Estimated direct labour hours Actual direct labour hours $359,600 $340,000 $449,500 $441,000 248,000 242,000 Manufacturing overhead applied based on direct labour cost is? a. $348,480 b. $359,600 O c. $360,000 d. $352,800
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