The predetermined overhead rate for Wonder Co. is based on direct labor hours. At the beginning of the period, the company estimated that it will use 60,000 direct labor hours during the period. They have estimated total manufacturing overhead at $1,440,000. The number of actual direct labor hours for the period was 63,000. Wonder Co. incurred $1,638,000 in manufacturing overhead cost. What is Wonder Co.'s predetermined overhead rate for the period? A. $22.86 per direct labor hour B. $24.00 per direct labor hour C. $26.00 per direct labor hour

The predetermined overhead rate for Wonder Co. is based on direct labor hours. At the beginning of the period, the company estimated that it will use 60,000 direct labor hours during the period. They have estimated total manufacturing overhead at $1,440,000. The number of actual direct labor hours for the period was 63,000. Wonder Co. incurred $1,638,000 in manufacturing overhead cost. What is Wonder Co.'s predetermined overhead rate for the period? A. $22.86 per direct labor hour B. $24.00 per direct labor hour C. $26.00 per direct labor hour

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Description: The predetermined overhead rate for Wonder Co. is based on direct labor hours. At the beginningof the period, the company estimated that it will use 60, 000 direct labor hours during the period.They have estimated total manufacturing overhead at $1,

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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