Krypton Ltd.'s budgeted information relating to the manufacture of two of its products is presented below:...

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Krypton Ltd.s budgeted information relating to the manufacture of two of its products is presented below: # of times driver

What would be the pre-determined overhead rate under a traditional costing model, with overhead allocated based on direct lab

business accounting

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Answer 1

Answer #1

Ans:a.$3.28 is Correct Answer

Working:

Total labor hours = total labor cost / labour rate

= [348,243+529,565] / 11

= 79,800.73 labour hours

Overhead allocation rate

= total overhead cost / total labor hours

= [ 61,111+121,374+79,587] /79800.73

= $3.2841=$3.28 (If rounded off)

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Answer 2

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