Redfern Audio produces audio equipment including headphones. At the Campus Facility, it produces two wireless models, Standard and Enhanced, which differ both in the materials and components used and in the labor skill required. Data for the Campus Plant for the third quarter follow. Units produced Machine-hours Direct labor-hours Direct materials costs Direct labor costs Manufacturing overhead Total costs Standard Predetermined overhead rate 29,100 17,460 21,825 $ 582,000 349,290 Enhanced 9,700 11,640 21,825 $ 873,000 742,850 Total % of direct labor cost 38,800 29,100 43,650 Required: Compute the predetermined overhead rate assuming that Redfern Audio uses direct labor costs to allocate overhead costs. Note: Round your answer to 2 decimal places. $ 1,455,000 1,091,250 750,780 $ 3,297,030

Redfern Audio produces audio equipment including headphones. At the Campus Facility, it produces two wireless models, Standard and Enhanced, which differ both in the materials and components used and in the labor skill required. Data for the Campus Plant for the third quarter follow. Units produced Machine-hours Direct labor-hours Direct materials costs Direct labor costs Manufacturing overhead Total costs Standard Predetermined overhead rate 29,100 17,460 21,825 $ 582,000 349,290 Enhanced 9,700 11,640 21,825 $ 873,000 742,850 Total % of direct labor cost 38,800 29,100 43,650 Required: Compute the predetermined overhead rate assuming that Redfern Audio uses direct labor costs to allocate overhead costs. Note: Round your answer to 2 decimal places. $ 1,455,000 1,091,250 750,780 $ 3,297,030

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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Redfern Audio produces audio equipment including headphones. At the Campus Facility, it produces two wireless models, Standard and Enhanced, which differ both in the materials and components used and in the labor skill required. Data for the Campus Plant for the third quarter follow. Units produced Machine-hours Direct labor-hours Direct materials costs Direct labor costs Manufacturing overhead Total costs Standard 29,700 17,820 22,275 $ 594,000 356,400 Predetermined overhead rate Enhanced 9,900 11,880 22,275 $ 891,000 757,350 Total Required: Compute the predetermined overhead rate assuming that Redfern Audio uses direct labor costs to allocate overhead costs. Note: Round your answer to 2 decimal places. % of direct labor cost 39,600 29,700 44,550 $ 1,485,000 1,113,750 730, 620 $ 3,329,370
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