Chapter 16, Problem 17P

Accounting probelm

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A company's prime costs total $5,300,000 and its conversion costs total $9,300,000. If direct materials are $2,150,000 and factory overhead is $6,150,000, then direct labor is:

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Marquis Company estimates that annual manufacturing overhead costs will be $975,600. Estimated annual operating activity bases are direct labor costs of $567,000, direct labor hours 45,700, and machine hours 99,400. Compute the predetermined overhead rate for each activity base. a. Overhead rate per direct labor cost. b. Overhead rate per direct labor hour. c. Overhead rate per machine hour.

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Accounting 12