Drill 1: Ogar Donut Store allocates its manufacturing overhead based on estimated direct labor hours. The store expects its MOH to be $125,000 for the month with 3,125 hours worked. At the end of the month, direct labor hours totaled to 3,300 hours. Problem: 1. Determine the pre-determined allocation rate. 2. Apply the overhead rate to get manufacturing overhead for the month.
Drill 1: Ogar Donut Store allocates its manufacturing overhead based on estimated direct labor hours. The store expects its MOH to be $125,000 for the month with 3,125 hours worked. At the end of the month, direct labor hours totaled to 3,300 hours. Problem: 1. Determine the pre-determined allocation rate. 2. Apply the overhead rate to get manufacturing overhead for the month.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Drill 1:
Ogar Donut Store allocates its manufacturing overhead based on estimated direct labor hours. The store
expects its MOH to be $125,000 for the month with 3,125 hours worked. At the end of the month, direct
labor hours totaled to 3,300 hours.
Problem:
1. Determine the pre-determined allocation rate.
2. Apply the overhead rate to get manufacturing overhead for the month.
мон 125,000
40
37-88
132,000
118375
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