Valley Manufacturing forecasts that total overhead for the coming year will be $3,600,000 and that total direct labor hours will be 90,000 hours. Year-to- date, the actual overhead is $2,100,000, and the actual direct labor hours are 48,000 hours. If Valley Manufacturing uses a predetermined overhead rate based on direct labor hours for applying overhead, what is the overhead rate? a. $40 per direct labor hour b. $43.75 per direct labor hour c. $35 per direct labor hour d. $50 per direct labor hour

Valley Manufacturing forecasts that total overhead for the coming year will be $3,600,000 and that total direct labor hours will be 90,000 hours. Year-to- date, the actual overhead is $2,100,000, and the actual direct labor hours are 48,000 hours. If Valley Manufacturing uses a predetermined overhead rate based on direct labor hours for applying overhead, what is the overhead rate? a. $40 per direct labor hour b. $43.75 per direct labor hour c. $35 per direct labor hour d. $50 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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Patterson Corporation expects to incur 70,000 of factory overhead and 60,000 of general and administrative costs next year. Direct labor costs at 5 per hour are expected to total 50,000. If factory overhead is to be applied per direct labor hour, how much overhead will be applied to a job incurring 20 hours of direct labor? a. 120 b. 260 c. 28 d. 140
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