Wilson Manufacturing forecasts that total overhead for the upcoming year will be $5,850,000 with 90,000 total direct labor hours. Year to date, the actual overhead is $2,925,000 and the actual direct labor hours are 45,000 hours. The predetermined overhead rate based on direct labor hours is (Round the factory overhead rate to the nearest dollar before multiplying by the number of hours.)

Wilson Manufacturing forecasts that total overhead for the upcoming year will be $5,850,000 with 90,000 total direct labor hours. Year to date, the actual overhead is $2,925,000 and the actual direct labor hours are 45,000 hours. The predetermined overhead rate based on direct labor hours is (Round the factory overhead rate to the nearest dollar before multiplying by the number of hours.)

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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