Orbit Components expects 72,000 labor hours this year.•Estimated fixed overhead = $1,080,000Estimated variable overhead = $9.25 per hourWhat is the predetermined overhead rate?

Step 1: Definition of Predetermined Overhead RateThe predetermined overhead rate is used to apply…

Answered: Orbit Components expects 72,000 labor…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 7EA: A company estimates its manufacturing overhead will be $750,000 for the next year. What is the...

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What is that overhead rate?
Predetermined overhead rate based on machine hours?
5. A company estimates its manufacturing overhead will be $750,000 for the next year. What is the predetermined overhead rate given the following independent allocation bases? Budgeted direct labor hours: 60,000 ? per ?. Budgeted direct labor: $1,500,000 ? per ?. Estimated machine hours: 100,000 ? per ?. PLEASE NOTE: Predetermined overhead rates will be rounded to two decimal places and shown with "$" and commas as needed (i.e. $12,345.67). The rates will include their proper label according to the textbook examples (no abbreviations).
Overhead rate per direct labor cost?
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If annual overhead costs are expected to be $1,000,000 and 200,000 total labor hours are anticipated (80% direct, 20% indirect), the overhead rate based on direct labor hours is: a. $6.25 b. $5.00 c. $25.00 d. $4.00
The Tom Corporation forecasts that total overhead for the current year will be $1,500,000 and that total machine hours will be 12,500 hours. Year to date, the actual overhead is $950,000, and the actual machine hours are 18,000 hours. If Tom Corporation uses a predetermined overhead rate based on machine hours for applying overhead, what is that overhead rate? a. $100 per machine hour b. $120 per machine hour c. $80 per machine hour d. $150 per machine hour
A company estimates its manufacturing overhead will be $630,000 for the next year. What is the predetermined overhead rate given the following independent allocation bases? When required, round your answers to nearest cent. A. Budgeted direct labor hours: 72,000 $______ per direct labor hour B. Budgeted direct labor expense: $1,800,000 $_____ per direct labor dollar C. Estimated machine hours: 120,000 $_____ per machine hour

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Orbit Components expects 72,000 labor hours this year. • Estimated fixed overhead = $1,080,000 Estimated variable overhead = $9.25 per hour What is the predetermined overhead rate?