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Kilbourne Appliances produces two models of beverage coolers for homes and offices, the KA-15 and the KA-24. Data on operations and costs for March follow. Units produced Machine-hours Direct labor-hours Direct materials costs Direct labor costs Manufacturing overhead costs Total costs KA-15 KA-24 Total 600 400 360 750 $ 72,000 540 1,750 $ 120,000 1,000 900 2,500 $ 192,000 15,000 35,000 50,000 187,200 $ 429,200 Required: a. Compute the predetermined overhead rate assuming that Kilbourne Appliances uses direct labor costs to allocate overhead costs. Note: Round your answer to 1 decimal place. > Answer is complete but not entirely correct. Predetermined overhead rate 3.7 % of direct labor cost

Kilbourne Appliances produces two models of beverage coolers for homes and offices, the KA-15 and the KA-24. Data on operations and costs for March follow. Units produced Machine-hours Direct labor-hours Direct materials costs Direct labor costs Manufacturing overhead costs Total costs KA-15 KA-24 Total 600 400 360 750 $ 72,000 540 1,750 $ 120,000 1,000 900 2,500 $ 192,000 15,000 35,000 50,000 187,200 $ 429,200 Required: a. Compute the predetermined overhead rate assuming that Kilbourne Appliances uses direct labor costs to allocate overhead costs. Note: Round your answer to 1 decimal place. > Answer is complete but not entirely correct. Predetermined overhead rate 3.7 % of direct labor cost

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter9: Profit Planning And Flexible Budgets
Section: Chapter Questions
Problem 64E: Use the following information for Exercises 9-63 and 9-64: Palladium Inc. produces a variety of...
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Kilbourne Appliances produces two models of beverage coolers for homes and offices, the KA-15 and the KA-24. Data on operations and costs for March follow.

     KA-15    KA-24    Total
Units produced    600    400    1,000
Machine-hours    360    540    900
Direct labor-hours    750    1,750    2,500
Direct materials costs    $ 72,000    $ 120,000    $ 192,000
Direct labor costs    15,000    35,000    50,000
Manufacturing overhead costs              187,200
Total costs              $ 429,200
Required:
a. Compute the predetermined overhead rate assuming that Kilbourne Appliances uses direct labor costs to allocate overhead costs.

Note: Round your answer to 1 decimal place.

Kilbourne Appliances produces two models of beverage coolers for homes and offices, the KA-15 and the KA-24. Data on operations and costs for March follow. Units produced Machine-hours Direct labor-hours Direct materials costs Direct labor costs Manufacturing overhead costs Total costs KA-15 KA-24 Total 600 400 360 750 $ 72,000 540 1,750 $ 120,000 1,000 900 2,500 $ 192,000 15,000 35,000 50,000 187,200 $ 429,200 Required: a. Compute the predetermined overhead rate assuming that Kilbourne Appliances uses direct labor costs to allocate overhead costs. Note: Round your answer to 1 decimal place. > Answer is complete but not entirely correct. Predetermined overhead rate 3.7 % of direct labor cost
Transcribed Image Text:Kilbourne Appliances produces two models of beverage coolers for homes and offices, the KA-15 and the KA-24. Data on operations and costs for March follow. Units produced Machine-hours Direct labor-hours Direct materials costs Direct labor costs Manufacturing overhead costs Total costs KA-15 KA-24 Total 600 400 360 750 $ 72,000 540 1,750 $ 120,000 1,000 900 2,500 $ 192,000 15,000 35,000 50,000 187,200 $ 429,200 Required: a. Compute the predetermined overhead rate assuming that Kilbourne Appliances uses direct labor costs to allocate overhead costs. Note: Round your answer to 1 decimal place. > Answer is complete but not entirely correct. Predetermined overhead rate 3.7 % of direct labor cost
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