Prism Manufacturing designs and manufactures precision components. During July, the company applied overhead of $180,000. Overhead is applied at the rate of 90% of direct labor cost. Direct labor wages average $30 per hour. Determine the number of direct labor hours Prism Manufacturing had for the month of July.

Prism Manufacturing designs and manufactures precision components. During July, the company applied overhead of $180,000. Overhead is applied at the rate of 90% of direct labor cost. Direct labor wages average $30 per hour. Determine the number of direct labor hours Prism Manufacturing had for the month of July.

Managerial Accounting

15th Edition

ISBN:9781337912020

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

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

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 4E: The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the...

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