XYZ Manufacturing uses a job-order costing system. Last period, the company incurred $95,000 of actual overhead and $125,000 of direct labor. For the next period, XYZ estimates that its overhead will be $100,000 and expects to incur $125,000 of direct labor. If XYZ bases applied overhead on direct labor cost, its predetermined overhead rate for the next period should be: a) 76% b) 80% c) 85% d) 90%
XYZ Manufacturing uses a job-order costing system. Last period, the company incurred $95,000 of actual overhead and $125,000 of direct labor. For the next period, XYZ estimates that its overhead will be $100,000 and expects to incur $125,000 of direct labor. If XYZ bases applied overhead on direct labor cost, its predetermined overhead rate for the next period should be: a) 76% b) 80% c) 85% d) 90%
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 8PB: Queen Bees Honey, Inc., estimated its annual overhead to be $110,000 and based its predetermined...
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