Homework Answers
Correct answer------------(c) $456,000
Working
| Calculation of Predetermined overhead rate | ||
| (A) | Estimated Overheads | $ 640,000.00 |
| (B) | Total labor hours estimated | 400,000 |
| (A/B) | Predetermined overhead rate | $ 1.60 per direct labor hour |
.
| Calculation of Manufacturing overheads Applied | ||
| (A) | Predetermined overhead rate | $ 1.60 |
| (B) | Actual Labor Hours | 285000 |
| (A*B) | Applied Manufacturing Overheads | $ 456,000.00 |
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