Branin corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. the company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $160,000, variable manufacturing overhead of $3.40 per direct labor- hour, and 80,000 direct labor-hours. the company has provided the following data concerning job a578 which was recently completed: total labor hours: 250. direct materials: $715. direct labor cost: $9000.
the predetermined overhead rate is closest to:
a. $8.80 per direct labor-hour
b. $2.00 per direct labor-hour
c. $3.40 per direct labor-hour
d. $5.40 per direct labor-hour
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Ответ:
d. $5.40 per direct labor-hour
Explanation:
The predetermined overhead rate = (total fixed manufacturing overhead cost + total variable manufacturing overhead ) / Total Direct Labor Hours
= [$ 160,000 + ( $3.40 per direct labor- hour * 80,000 direct labor-hours)] / 80,000 direct labor Hour
= [$ 160,000 + $ 272,000 ] /80,000 direct labor Hour
= $ 432,000/ 80000 direct labor Hour
= $ 5.40 per direct labor Hour
Ответ:
Predetermined overhead rate based on direct labor-hours is $5.4
Explanation:
To calculate predetermined overhead rate based on direct labor-hours the first thing we have to do is to divide fixed manufacturing overhead cost over the estimated labor hours ($160,000/80,000 hours), then we have to add the variable manufacturing overhead in this case $3.40 per hour
So predetermined overhead rate is (160,000/80,000)+3.4=$5.4 per direct labor-hour
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