Nelson Industries applies manufacturing overhead to jobs on the basis of direct labor hours used. Overhead costs are expected to total $315,600 for the year, and direct labor usage is estimated at 126,240 hours. For the year, $342,900 of overhead costs are incurred and 130,800 hours are used. Compute the manufacturing overhead rate for the year. (Round answer to 2 decimal places, e.g. 1.25.)

Nelson Industries applies manufacturing overhead to jobs on the basis of direct labor hours used. Overhead costs are expected to total $315,600 for the year, and direct labor usage is estimated at 126,240 hours. For the year, $342,900 of overhead costs are incurred and 130,800 hours are used. Compute the manufacturing overhead rate for the year. (Round answer to 2 decimal places, e.g. 1.25.)

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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