Luxury Tech Inc. estimates $12 million in direct labor costs for the next year. The company's overhead costs include $9,200,000 for indirect labor and $780,000 for factory utilities. The company uses 300,000 machine hours as its overhead allocation base. What is Luxury Tech Inc.'s plant wide overhead rate? a) $32.50 per machine hour b) $0.045 per machine hour c) $33.27 per machine hour d) $29.94 per machine hour e) $0.0156 per machine hour

Luxury Tech Inc. estimates $12 million in direct labor costs for the next year. The company's overhead costs include $9,200,000 for indirect labor and $780,000 for factory utilities. The company uses 300,000 machine hours as its overhead allocation base. What is Luxury Tech Inc.'s plant wide overhead rate? a) $32.50 per machine hour b) $0.045 per machine hour c) $33.27 per machine hour d) $29.94 per machine hour e) $0.0156 per machine hour

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter2: Job Order Costing

Section: Chapter Questions

Problem 4CMA: Patterson Corporation expects to incur 70,000 of factory overhead and 60,000 of general and...

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