Cheyenne Access Services Inc. leases access to high-speed computers to small businesses. It provides the following information for the year: Overhead cost Computer hours Direct labor hours Estimated $2,214,000 (a) 100,000 205,000 Actual $2,114,000 Predetermined overhead rate Overhead is applied on the basis of computer hours. 90,000 $ 185,000 Compute the predetermined overhead rate. (Round answer to 2 decimal places, e.g. 52.75.) per computer hour

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question

6

Cheyenne Access Services Inc. leases access to high-speed computers to small businesses. It provides the following information for
the year:
Overhead cost
Computer hours
Direct labor hours
Estimated
(a)
$2,214,000
100,000
205,000
Actual
$2,114,000
Predetermined overhead rate
Overhead is applied on the basis of computer hours.
90,000
$
185,000
Compute the predetermined overhead rate. (Round answer to 2 decimal places, e.g. 52.75.)
per computer hour
Transcribed Image Text:Cheyenne Access Services Inc. leases access to high-speed computers to small businesses. It provides the following information for the year: Overhead cost Computer hours Direct labor hours Estimated (a) $2,214,000 100,000 205,000 Actual $2,114,000 Predetermined overhead rate Overhead is applied on the basis of computer hours. 90,000 $ 185,000 Compute the predetermined overhead rate. (Round answer to 2 decimal places, e.g. 52.75.) per computer hour
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education