Summit Industries estimates that total overhead for the upcoming year will be $900,000 and total direct labor hours will be 30,000 hours. By the end of Q3, actual overhead is $675,000 and actual direct labor hours are 22,500 hours. If Summit Industries uses a predetermined overhead rate based on direct labor hours for applying overhead, what is that overhead rate? a. $25 per direct labor hour b. $30 per direct labor hour c. $35 per direct labor hour d. $40 per direct labor hour

Summit Industries estimates that total overhead for the upcoming year will be $900,000 and total direct labor hours will be 30,000 hours. By the end of Q3, actual overhead is $675,000 and actual direct labor hours are 22,500 hours. If Summit Industries uses a predetermined overhead rate based on direct labor hours for applying overhead, what is that overhead rate? a. $25 per direct labor hour b. $30 per direct labor hour c. $35 per direct labor hour d. $40 per direct labor hour

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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