Quick Step Company is debating the use of direct labor cost or direct labor hours as...

Question

Question

Quick Step Company is debating the use of direct labor cost or direct labor hours as...

Quick Step Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the most recent year.

Estimated Direct Labor Cost	528,000
Actual Direct Labor Cost	511,720
Estimated Manufacturing Overhead	464,640
Actual Manufacturing Overhead	385,000
Estimated Direct Labor Hours	27,588
Actual Direct Labor Hours	25,597

If Quick Step Company uses direct labor cost as the allocation base, what would the allocated manufacturing overhead be for the year?

		385,000
		450,314
		431,107
		823,443

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Estimated Manufacturing Overhead = $464,640

Estimated Direct Labor Cost = $528,000

Predetermined overhead rate = Estimated Manufacturing Overhead/Estimated Direct Labor Cost

= 464,640/528,000

= 88% of direct labor cost

Actual direct labor cost = $511,720

Allocated manufacturing overhead = Actual direct labor cost x Predetermined overhead rate

= 511,720 x 88%

= $450,314

the allocated manufacturing overhead be for the year $450,314

Second option is correct.

Kindly give a positive rating if you are satisfied with this solution and please ask if you have any query.

Thanks

Add a comment

Answer 2

Similar Homework Help Questions

Quick Step Company is debating the use of direct labor cost or direct labor hours as...

Quick Step Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the most recent year. Estimated Direct Labor Cost 480,000 Actual Direct Labor Cost 465,200 Estimated Manufacturing Overhead 422,400 Actual Manufacturing Overhead 350,000 Estimated Direct Labor Hours 25,080 Actual Direct Labor Hours 23,270 If Quick Step Company uses direct labor cost as the allocation base, what would the allocated manufacturing overhead...
Quick Step Company is debating the use of direct labor cost or direct labor hours as...

Quick Step Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the most recent year: Estimated direct labor cost Actual direct labor cost Estimated manufacturing overhead costs Actual manufacturing overhead costs Estimated direct labor hours Actual direct labor hours $500,200 $466,000 $425,100 $350.800 250,300 232,600 If Quick Step Company uses direct labor hours as the allocation base, what would the allocated...
Quick Step Company is debating the use of direct labor cost or direct labor hours as...

Quick Step Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the most recent year: Estimated direct labor cost Actual direct labor cost Estimated manufacturing overhead costs Actual manufacturing overhead costs Estimated direct labor hours Actual direct labor hours $500,100 $465,100 $425,300 $350,700 250,200 232,800 If Quick Step Company uses direct labor hours as the allocation base, what would the predetermined...

Nadal Company is debating the use of direct labor cost or direct labor hours as the...

Nadal Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the most recent year: Actual direct labor hours Estimated direct labor hours Actual manufacturing overhead costs Estimated manufacturing overhead costs Actual direct labor cost Estimated direct labor cost 232,500 250,300 $363,500 $401,900 $465,800 $500,700 If Nadal Company uses direct labor cost as the allocation base, what would the predetermined manufacturing overhead...
for the most recent year No Company is debating the use of direct labor cost or...

for the most recent year No Company is debating the use of direct labor cost or director hours as the cost otion base for locating manufacturing overhead. The flowing formation is Actual direct labor hours 20.800 Estimated director hours Actual manufacturing overhead costs Estimated manuachung vorhead costs Acharact aborc $405.700 Estimated direct labor cost Il Nadal Company es direct labor cost as the location base what would the predetermined anduring w a t be? O A 519 OB. 74% OC....
This Question: 1 pt 4 of 15 (14 complete) This Test: 15 pts poss Nadal Company...

This Question: 1 pt 4 of 15 (14 complete) This Test: 15 pts poss Nadal Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the most recent year Actual direct labor hours Estimated direct labor hours 232.500 250,600 O A 5094,370 OB. $426,400 OC. $350,100 Click to select your answer. Actual direct labor hours Estimated direct labor hours Actual manufacturing overhead...

Question number 1: Davy Company had a beginning work in process inventory balance of $32,000. During...

Question number 1: Davy Company had a beginning work in process inventory balance of $32,000. During the year, $54,500 of direct materials was placed into production. Direct labor was $63,400, and indirect labor was $19,500. Manufacturing overhead is applied at 125% of direct labor costs. Actual manufacturing overhead was $86,500, and jobs costing $225,000 were completed during the year. What is the ending work in process inventory balance? a. $172,000 b. $ 11,400 c. $ 4,150 d. $ 79,250 Question...
Actual and estimated data for manufacturing overhead, direct labor cost, direct labor hours, and machine hours...

Actual and estimated data for manufacturing overhead, direct labor cost, direct labor hours, and machine hours for the most recent fiscal year are summarized here: Manufacturing overhead cost Direct labor cost Direct labor hours Machine hours Estimated Value $ 599,000 $ 401.000 17,000 hours 8.000 hours Actual Value $ 660.000 $ 455,000 18.500 hours 9.000 hours Required: 1. Based on the company's current allocation base (direct labor hours), compute the following: a. Predetermined overhead rate. (Round your answer to 2...
Amberjack Company is trying to decide on an allocation base to use to assign manufacturing overhead...

Amberjack Company is trying to decide on an allocation base to use to assign manufacturing overhead to jobs. The company has always used direct labor hours to assign manufacturing overhead to products, but it is trying to decide whether it should use a different allocation base such as direct labor dollars or machine hours. Actual and estimated data for manufacturing overhead, direct labor cost, direct labor hours, and machine hours for the most recent fiscal year are summarized here Estimated...

Mega Manufacturing uses direct labor hours as its allocation base when applying overhead. Actual overhead cost...

Mega Manufacturing uses direct labor hours as its allocation base when applying overhead. Actual overhead cost was $750,000, actual Direct Labor cost was $240,000, and actual direct labor hours were 75,000. Estimated overhead for the period is $500,000, estimated direct labor cost is $650,000, and estimated direct labor hours are 50,000. What is the estimated overhead allocation rate? A. $13.00 per Direct Labour hour B. $15.00 per Direct Labour Hour C. $10 per Direct Labour Hour D. $3.20 per Direct Labour...

Quick Step Company is debating the use of direct labor cost or direct labor hours as...

Homework Answers

Add Answer to:
Quick Step Company is debating the use of direct labor cost or direct labor hours as...

Post as a guest

Earn Coins