Quick Step Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the most recent year: Estimated direct labor cost $500,300 Actual direct labor cost $465,700 Estimated manufacturing overhead costs $425,800 Actual manufacturing overhead costs $350,000 Estimated direct labor hours 250,200 Actual direct labor hours 232,800 If Quick Step Company uses direct labor hours as the allocation base, what would the predetermined manufacturing overhead rate be? Question 49 options: $1.83 per direct labor hour $1.50 per direct labor hour $1.40 per direct labor hour $1.70 per direct labor hour
Quick Step Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the most recent year: Estimated direct labor cost $500,300 Actual direct labor cost $465,700 Estimated manufacturing overhead costs $425,800 Actual manufacturing overhead costs $350,000 Estimated direct labor hours 250,200 Actual direct labor hours 232,800 If Quick Step Company uses direct labor hours as the allocation base, what would the predetermined manufacturing overhead rate be? Question 49 options: $1.83 per direct labor hour $1.50 per direct labor hour $1.40 per direct labor hour $1.70 per direct labor hour
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Quick Step Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead . The following information is available for the most recent year:
If Quick Step Company uses direct labor hours as the allocation base, what would the predetermined manufacturing overhead rate be?
| Estimated direct labor cost | $500,300 |
| Actual direct labor cost | $465,700 |
| Estimated |
$425,800 |
| Actual manufacturing overhead costs | $350,000 |
| Estimated direct labor hours | 250,200 |
| Actual direct labor hours | 232,800 |
Question 49 options:
|
|
$1.83 per direct labor hour
|
|
|
$1.50 per direct labor hour
|
|
|
$1.40 per direct labor hour
|
|
|
$1.70 per direct labor hour
|
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