year, Kralik Kralik's Ice Cream Shop allocates overhead based on machine hours. At the beginning of the estimated $18,000 of overhead costs and 5,500 machine hours would be used. During the year, $16,050 of overhead was incurred and 7,000 machine hours were used. What was the predetermined overhead rate? (Round answer to the nearest cent.) $2.57 per direct labor hour. $2.29 per direct labor hour. $2.92 per direct labor hour. $3.27 per direct labor hour.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
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Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 1EB: Green Bay Cheese Company estimates its overhead to be $375,000. It expects to have 125,000 direct...
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year, Kralik
Kralik's Ice Cream Shop allocates overhead based on machine hours. At the beginning of the
estimated $18,000 of overhead costs and 5,500 machine hours would be used. During the year, $16,050 of
overhead was incurred and 7,000 machine hours were used.
What was the predetermined overhead rate? (Round answer to the nearest cent.)
$2.57 per direct labor hour.
$2.29 per direct labor hour.
$2.92 per direct labor hour.
$3.27 per direct labor hour.
Transcribed Image Text:year, Kralik Kralik's Ice Cream Shop allocates overhead based on machine hours. At the beginning of the estimated $18,000 of overhead costs and 5,500 machine hours would be used. During the year, $16,050 of overhead was incurred and 7,000 machine hours were used. What was the predetermined overhead rate? (Round answer to the nearest cent.) $2.57 per direct labor hour. $2.29 per direct labor hour. $2.92 per direct labor hour. $3.27 per direct labor hour.
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