Adams manufacturing allocates overhead to production on the basis of direct labor costs. at the beginning of the year, adams estimated total overhead of $396,000; materials of $410,000 and direct labor of $220,000. during the year adams incurred $418,000 in materials costs, $413,200 in overhead costs and $224,000 in direct labor costs. compute the overhead application rate.
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Ответ:
The overhead application rate is 1.8
Explanation:
In the question both the estimated and actual overhead cost , material and labor cost are provided -
ESTIMATED ACTUAL
Overhead cost $396,000 $418,000
Material cost $410,000 $413,200
Direct cost $220,000 $224,000
Overhead application rate can be calculated by dividing the total budgeted overhead cost by direct labor cost.
= Budgeted overhead cost / direct labor cost
= $396,000 / $220,000
= 1.8
Ответ:
ty for the warning, have a great day:)