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Predetermined Overhead Rate, Overhead Application At the beginning of the year, Ilberg Company estimated the following costs: Overhead $416,000 Direct labor cost 520,000 Ilberg uses normal costing and applies overhead on the basis of direct labor cost. (Direct labor cost is equal to total direct labor hours worked multiplied by the wage rate.) For the month of December, direct labor cost was $38,900. Required: 1.  Calculate the predetermined overhead rate for the year. Enter the percentage answer as a whole number. fill in the blank 1 % of direct labor cost 2.  Calculate the overhead applied to production in December. $fill in the blank 2

Predetermined Overhead Rate, Overhead Application At the beginning of the year, Ilberg Company estimated the following costs: Overhead $416,000 Direct labor cost 520,000 Ilberg uses normal costing and applies overhead on the basis of direct labor cost. (Direct labor cost is equal to total direct labor hours worked multiplied by the wage rate.) For the month of December, direct labor cost was $38,900. Required: 1.  Calculate the predetermined overhead rate for the year. Enter the percentage answer as a whole number. fill in the blank 1 % of direct labor cost 2.  Calculate the overhead applied to production in December. $fill in the blank 2

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Predetermined Overhead Rate, Overhead Application

At the beginning of the year, Ilberg Company estimated the following costs:

Overhead $416,000
Direct labor cost 520,000

Ilberg uses normal costing and applies overhead on the basis of direct labor cost. (Direct labor cost is equal to total direct labor hours worked multiplied by the wage rate.) For the month of December, direct labor cost was $38,900.

Required:

1.  Calculate the predetermined overhead rate for the year. Enter the percentage answer as a whole number.
fill in the blank 1 % of direct labor cost

2.  Calculate the overhead applied to production in December.
$fill in the blank 2

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