If annual overhead costs are expected to be $ 784000 and direct labor costs are expected to be $ 1000000, then if the activity base is direct labor costs: a. a predetermined overhead rate cannot be determined. b. for every dollar of manufacturing overhead, 1.28 cents of direct labor will be assigned. c. for every dollar of direct labor, 78.4 cents of manufacturing overhead will be assigned. d. $ 1.28 is the predetermined overhead rate.
If annual overhead costs are expected to be $ 784000 and direct labor costs are expected to be $ 1000000, then if the activity base is direct labor costs: a. a predetermined overhead rate cannot be determined. b. for every dollar of manufacturing overhead, 1.28 cents of direct labor will be assigned. c. for every dollar of direct labor, 78.4 cents of manufacturing overhead will be assigned. d. $ 1.28 is the predetermined overhead rate.
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 8PA: Coops Stoops estimated its annual overhead to be $85,000 and based its predetermined overhead rate...
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If annual
a. a predetermined overhead rate cannot be determined.
b. for every dollar of manufacturing overhead, 1.28 cents of direct labor will be assigned.
c. for every dollar of direct labor, 78.4 cents of manufacturing overhead will be assigned.
d. $ 1.28 is the predetermined overhead rate.
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