Question

Chapter 15 Homework Help Save & Exit Submit Check my work A company estimates the following manufacturing costs for the next period: direct labor, $500,000; direct materials, $196,000, and factory overhead, $126,000. 4.44 points Required: 1. Compute its predetermined overhead rate as a percent of direct labor. 2. Compute its overhead cost as a percent of direct materials. eBook Print Complete this question by entering your answers in the tabs below. References Required 1 Required 2 Compute its predetermined overhead rate as a percent of direct labor. Overhead Rate Choose Denominator: Choose Numerator: Overhead Rate Overhead Rate Required Required 2 >

I need help with the whole question with a solution and explanation Please and Thank you.

Answer 1

Answers

--The basis on which overheads are to be applied is considered under 'denominator' value.

[1]

Choose Numerator	Choose Denominator	Overhead Rate
Estimated factory overhead	Direct Labor	Overhead Rate
$126,000	$500,000	25.2%

[2]

Choose Numerator	Choose Denominator	Overhead Rate
Estimated factory overhead	Direct Material	Overhead Rate
$126,000	$196,000	64.3%