Carrington Tech Manufacturing expects its annual overhead cost to be $1,200,000 and its direct labor costs to be $1,500,000. At year-end, the actual overhead cost turned out to be $1,180,000, and actual direct labor costs totaled $1,600,000. What is the company's predetermined overhead rate to the nearest cent?

Carrington Tech Manufacturing expects its annual overhead cost to be $1,200,000 and its direct labor costs to be $1,500,000. At year-end, the actual overhead cost turned out to be $1,180,000, and actual direct labor costs totaled $1,600,000. What is the company's predetermined overhead rate to the nearest cent?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 23Q: If a factory operates at 100% of capacity one month, 90% of capacity the next month, and 105% of...

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