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If overhead is applied using traditional costing based on direct labor hours, the overhead application rate is O $10.70. O $15.25. O $33.84. O $10.20.

If overhead is applied using traditional costing based on direct labor hours, the overhead application rate is O $10.70. O $15.25. O $33.84. O $10.20.

FINANCIAL ACCOUNTING
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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Bonita Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100000 for the year. The following information is available regarding activity cost pools, cost drivers, total estimated overhead costs, and estimated use of activities per product: Activity Cost Pool Ordering and Receiving Machine Setup Machining Assembly Inspection Cost Driver $10.70. $15.25. $33.84. $10.20. Orders Setups Machine hours Parts Inspections Est. Overhead $ 180000 274000 1525000 1070000 335000 Cost Driver Activity 500 orders 450 setups 125000 ΜΗ 1000000 parts 500 inspections If overhead is applied using traditional costing based on direct labor hours, the overhead application rate is
Transcribed Image Text:Bonita Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100000 for the year. The following information is available regarding activity cost pools, cost drivers, total estimated overhead costs, and estimated use of activities per product: Activity Cost Pool Ordering and Receiving Machine Setup Machining Assembly Inspection Cost Driver $10.70. $15.25. $33.84. $10.20. Orders Setups Machine hours Parts Inspections Est. Overhead $ 180000 274000 1525000 1070000 335000 Cost Driver Activity 500 orders 450 setups 125000 ΜΗ 1000000 parts 500 inspections If overhead is applied using traditional costing based on direct labor hours, the overhead application rate is
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