12. Dale Company applies overhead using a pre-determined overhead rate based on the direct labour cost....

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12. Dale Company applies overhead using a pre-determined overhead rate based on the direct labour cost. At the beginning of t

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Answer 1

Answer #1

Estimated direct labor cost = 20,000 * 20 = 400,000

Overhead application rate

= Estimated overhead/Estimated direct labor cost

= 500,000/400,000

= 125% of direct labor cost

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Answer 2

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