its manufacturing overhead. The direct labor cost rate is $8 per direct labor hour. The company estimates that the number of labor hours to be used next month is 600,000 labor hours. The estimated variable overhead is estimated to be quarter of the direct labor cost rate. The estimated fixed overhead costs are $50,000. Calculate the predetermined overhead rate. O a. 4.08 b. 8.08 С. 5.08 d. 2.08 е. None of the given answers

its manufacturing overhead. The direct labor cost rate is $8 per direct labor hour. The company estimates that the number of labor hours to be used next month is 600,000 labor hours. The estimated variable overhead is estimated to be quarter of the direct labor cost rate. The estimated fixed overhead costs are $50,000. Calculate the predetermined overhead rate. O a. 4.08 b. 8.08 С. 5.08 d. 2.08 е. None of the given answers

Name: Company XYZ uses labor hours to allocateits manufacturing overhead. T
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Description: Company XYZ uses labor hours to allocateits manufacturing overhead. The direct laborcost rate is $8 per direct labor hour. Thecompany estimates that the number of laborhours to be used next month is 600,000labor hours. The estimated variableoverhead

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Question

Company XYZ uses labor hours to allocate
its manufacturing overhead. The direct labor
cost rate is $8 per direct labor hour. The
company estimates that the number of labor
hours to be used next month is 600,000
labor hours. The estimated variable
overhead is estimated to be quarter of the
direct labor cost rate. The estimated fixed
overhead costs are $50,000. Calculate the
predetermined overhead rate.
а. 4.08
b. 8.08
С.
5.08
d. 2.08
е.
None of the given answers

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W A Corporation produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 40,000 units per month is as follows: Direct Materials.. $18.00 Direct Labor... Variable Manufacturing OH... Fixed Manufacturing OH. Variable S&A... Fixed S&A.. $6.80 Q. What is the minimum price A. $ $1.90 $5.10 $2.40 $11.60 The normal selling price of the product is $49.1 per unit. (16 An order has been received from an overseas customer for 1,000 units to be delivered this month at a special discounted price. This order would not change the total amount of the Company's fixed costs. The variable selling and administrative expense would be $0.10 less per unit on this order than on normal sales. Direct labor is a variable cost in this company. Suppose there is not enough idle capacity to produce all the units for the overseas customer and accepting the special order would require cutting back on production of 100 units for regular…