The Production-in-Progress inventory account of a manufacturing company shows a balance of $4,800 at the end of the accounting period. The job cost sheets for two incomplete jobs report charges of $600 and $800 for materials, and charges of $1,000 and $1,200 for direct labor. From this information, calculate the predetermined overhead rate, as a percentage of direct labor costs.

The Production-in-Progress inventory account of a manufacturing company shows a balance of $4,800 at the end of the accounting period. The job cost sheets for two incomplete jobs report charges of $600 and $800 for materials, and charges of $1,000 and $1,200 for direct labor. From this information, calculate the predetermined overhead rate, as a percentage of direct labor costs.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter1: Introduction To Cost Accounting

Section: Chapter Questions

Problem 12E: Gerken Fabrication Inc. uses the job order cost system of accounting. The following information was...

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