E2-5 (Algo) Calculating Predetermined Overhead Rate and Applied Overhead [LO 2-3] Wheeler's Bike Company manufactures custom racing bicycles. The company uses a job order cost system to determine the cost of each bike. Estimated costs and expenses for the coming year follow: Bike parts Factory machinery depreciation Factory supervisor salaries Factory direct labor Factory supplies Factory property tax Advertising cost Administrative salaries Administrative-related depreciation Total expected costs $ 353,800 57,000 136,000 217,931 44,400 25,250 27,000 54,000 23,700 $939,081 Required: 1. Calculate the predetermined overhead rate per direct labor hour if the average direct labor rate is $11.41 per hour. 2. Determine the amount of applied overhead if 18,900 actual hours are worked in the upcoming year.
E2-5 (Algo) Calculating Predetermined Overhead Rate and Applied Overhead [LO 2-3] Wheeler's Bike Company manufactures custom racing bicycles. The company uses a job order cost system to determine the cost of each bike. Estimated costs and expenses for the coming year follow: Bike parts Factory machinery depreciation Factory supervisor salaries Factory direct labor Factory supplies Factory property tax Advertising cost Administrative salaries Administrative-related depreciation Total expected costs $ 353,800 57,000 136,000 217,931 44,400 25,250 27,000 54,000 23,700 $939,081 Required: 1. Calculate the predetermined overhead rate per direct labor hour if the average direct labor rate is $11.41 per hour. 2. Determine the amount of applied overhead if 18,900 actual hours are worked in the upcoming year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![E2-5 (Algo) Calculating Predetermined Overhead Rate and Applied Overhead [LO 2-3]
Wheeler's Bike Company manufactures custom racing bicycles. The company uses a job order cost system to determine the cost of
each bike. Estimated costs and expenses for the coming year follow:
Bike parts
Factory machinery depreciation
Factory supervisor salaries
Factory direct labor
Factory supplies
Factory property tax
Advertising cost
Administrative salaries
Administrative-related depreciation
Total expected costs
Required:
1. Calculate the predetermined overhead rate per direct labor hour if the average direct labor rate is $11.41 per hour.
2. Determine the amount of applied overhead if 18,900 actual hours are worked in the upcoming year.
$ 353,800
57,000
136,000
217,931
44,400
25,250
27,000
54,000
23,700
$939,081
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Calculate the predetermined overhead rate per direct labor hour if the average direct labor rate is $11.41 per hour.
Note: Round your answer to 2 decimal places.
Predetermined Overhead Rate
per DL Hour](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fff3c822f-ba0c-45ea-b1fb-317844b85f73%2Fd12d3b40-5f56-43af-a3aa-a88d57e664be%2F8c5rmts.jpeg&w=3840&q=75)
Transcribed Image Text:E2-5 (Algo) Calculating Predetermined Overhead Rate and Applied Overhead [LO 2-3]
Wheeler's Bike Company manufactures custom racing bicycles. The company uses a job order cost system to determine the cost of
each bike. Estimated costs and expenses for the coming year follow:
Bike parts
Factory machinery depreciation
Factory supervisor salaries
Factory direct labor
Factory supplies
Factory property tax
Advertising cost
Administrative salaries
Administrative-related depreciation
Total expected costs
Required:
1. Calculate the predetermined overhead rate per direct labor hour if the average direct labor rate is $11.41 per hour.
2. Determine the amount of applied overhead if 18,900 actual hours are worked in the upcoming year.
$ 353,800
57,000
136,000
217,931
44,400
25,250
27,000
54,000
23,700
$939,081
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Calculate the predetermined overhead rate per direct labor hour if the average direct labor rate is $11.41 per hour.
Note: Round your answer to 2 decimal places.
Predetermined Overhead Rate
per DL Hour
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