What would be the predetermined overhead rate?
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 2PA: York Company Is a machine shop that estimated overhead will be $50,000, consisting of 5,000 hours of...
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Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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![3. Melendez Corporation uses a predetermined overhead rate based on direct labor hours to apply
manufacturing overhead to jobs during the year.
Direct materials
Direct labor
Production supervisor's salary
Indirect labor
Sales salaries
Depreciation on factory equipment
Depreciation on sales office copy machines
Factory rent
$50,000
95,000
62.000
34.000
58.000
26.000
7,000
88,000
I
Melendez estimates that 12,000 direct labor-hours will be worked during the year.
What would be the predetermined overhead rate?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2942bd3e-afc0-4d66-8fdd-587a7a0c607e%2F2b316a5a-7812-47ec-bcee-cc1730a5c51d%2Fi0wych_processed.jpeg&w=3840&q=75)
Transcribed Image Text:3. Melendez Corporation uses a predetermined overhead rate based on direct labor hours to apply
manufacturing overhead to jobs during the year.
Direct materials
Direct labor
Production supervisor's salary
Indirect labor
Sales salaries
Depreciation on factory equipment
Depreciation on sales office copy machines
Factory rent
$50,000
95,000
62.000
34.000
58.000
26.000
7,000
88,000
I
Melendez estimates that 12,000 direct labor-hours will be worked during the year.
What would be the predetermined overhead rate?
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