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In December 2020, Imprint Studios established its predetermined overhead rate for movies produced during the year 2021 using the following cost predictions: Overhead Costs $2,100,000 Direct Labor Costs $500,000 At the year-end of 2021, the company's records show that actual overhead costs for the year were $1,950,000. Actual direct labor costs had been assigned to jobs as follows: | Movies completed and released | $300,000 || Movies still in production | $75,000 || Total Actual Direct Labor Cost | $375,000 | Required: Determine the predetermined overhead rate for the year 2021.

In December 2020, Imprint Studios established its predetermined overhead rate for movies produced during the year 2021 using the following cost predictions: Overhead Costs $2,100,000 Direct Labor Costs $500,000 At the year-end of 2021, the company's records show that actual overhead costs for the year were $1,950,000. Actual direct labor costs had been assigned to jobs as follows: | Movies completed and released | $300,000 || Movies still in production | $75,000 || Total Actual Direct Labor Cost | $375,000 | Required: Determine the predetermined overhead rate for the year 2021.

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 3PA: Pocono Cement Forms expects $900,000 in overhead during the next year. It does not know whether it...
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Determine the predetermined overhead rate for the year 2021

In December 2020, Imprint Studios established its predetermined overhead rate for movies produced during the year 2021 using the following cost predictions: Overhead Costs $2,100,000 Direct Labor Costs $500,000 At the year-end of 2021, the company's records show that actual overhead costs for the year were $1,950,000. Actual direct labor costs had been assigned to jobs as follows: | Movies completed and released | $300,000 || Movies still in production | $75,000 || Total Actual Direct Labor Cost | $375,000 | Required: Determine the predetermined overhead rate for the year 2021.
Transcribed Image Text:In December 2020, Imprint Studios established its predetermined overhead rate for movies produced during the year 2021 using the following cost predictions: Overhead Costs $2,100,000 Direct Labor Costs $500,000 At the year-end of 2021, the company's records show that actual overhead costs for the year were $1,950,000. Actual direct labor costs had been assigned to jobs as follows: | Movies completed and released | $300,000 || Movies still in production | $75,000 || Total Actual Direct Labor Cost | $375,000 | Required: Determine the predetermined overhead rate for the year 2021.
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