In December 2016, Oceanic Works Co. established its predetermined overhead rate for jobs produced during 2017 by using the following cost predictions: overhead cost of $350,000 and direct materials cost of $280,000. At year-end 2017, the company's records show that actual overhead costs for the year were $800,000. Determine the predetermined overhead rate for 2017.

In December 2016, Oceanic Works Co. established its predetermined overhead rate for jobs produced during 2017 by using the following cost predictions: overhead cost of $350,000 and direct materials cost of $280,000. At year-end 2017, the company's records show that actual overhead costs for the year were $800,000. Determine the predetermined overhead rate for 2017.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 10E: Compute the total job cost for each of the following scenarios: a. If the direct labor cost method...

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