Marston Manufacturing estimates that overhead costs for the next year will be $5,200,000 for indirect labor and $1,300,000 for factory utilities. The company uses labor hours as its overhead allocation base. If 180,000 labor hours are planned for the next year, what is the company's plantwide overhead rate? a) $36.11 per labor hour b) $28.78 per labor hour c) $0.25 per labor hour d) $3.90 per labor hour e) $0.15 per labor hour

Marston Manufacturing estimates that overhead costs for the next year will be $5,200,000 for indirect labor and $1,300,000 for factory utilities. The company uses labor hours as its overhead allocation base. If 180,000 labor hours are planned for the next year, what is the company's plantwide overhead rate? a) $36.11 per labor hour b) $28.78 per labor hour c) $0.25 per labor hour d) $3.90 per labor hour e) $0.15 per labor hour

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 23Q: If a factory operates at 100% of capacity one month, 90% of capacity the next month, and 105% of...

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