Sierra Manufacturing estimates that annual manufacturing overhead costs will be $1,250,000. The estimated annual operating activity bases are direct labor cost of $600,000, direct labor hours of 75,000, and machine hours of 120,000. Required: Compute the predetermined overhead rate for each activity base. (Round answers to 2 decimal places, e.g. 10.50.)

Sierra Manufacturing estimates that annual manufacturing overhead costs will be $1,250,000. The estimated annual operating activity bases are direct labor cost of $600,000, direct labor hours of 75,000, and machine hours of 120,000. Required: Compute the predetermined overhead rate for each activity base. (Round answers to 2 decimal places, e.g. 10.50.)

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 23Q: If a factory operates at 100% of capacity one month, 90% of capacity the next month, and 105% of...

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