Equinox Fabrication Plant suffered a fire incident in August due to which most of the records for the year were destroyed. The following accounting data for the year that were recovered: Total manufacturing overhead estimated at the beginning of the year Total direct labor costs estimated at the beginning of the year Total direct labor hours estimated at the beginning of the year $105,840 $186,000 3,600 direct labor hours $99,760 $142,000 Actual manufacturing overhead costs for the year Actual direct labor costs for the year Actual direct labor hours for the year 2,950 direct labor hours The company bases its manufacturing overhead allocation on direct labor hours. What was the predetermined overhead allocation rate for the vear?

Equinox Fabrication Plant suffered a fire incident in August due to which most of the records for the year were destroyed. The following accounting data for the year that were recovered: Total manufacturing overhead estimated at the beginning of the year Total direct labor costs estimated at the beginning of the year Total direct labor hours estimated at the beginning of the year $105,840 $186,000 3,600 direct labor hours $99,760 $142,000 Actual manufacturing overhead costs for the year Actual direct labor costs for the year Actual direct labor hours for the year 2,950 direct labor hours The company bases its manufacturing overhead allocation on direct labor hours. What was the predetermined overhead allocation rate for the vear?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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