Marquis Company estimates that annual manufacturing overhead costs will be $915,560. Estimated annual operating activity bases...
Marquis Company estimates that annual manufacturing overhead
costs will be $915,560. Estimated annual operating activity bases
are direct labor cost $487,000, direct labor hours 48,700, and
machine hours 97,400.
Compute the predetermined overhead rate for each activity base.
(Round answers to 2 decimal places, e.g. 10.50% or
10.50.)
| Overhead rate per direct labor cost |
enter percentages rounded to 2 decimal places |
% | |
|---|---|---|---|
| Overhead rate per direct labor hour |
$enter a dollar amount rounded to 2 decimal places |
||
| Overhead rate per machine hour |
$enter a dollar amount rounded to 2 decimal places |
Homework Answers
| A) (915,560)/(487,000 | 188% | |
| B) (915,560/48,700) | 18.80 | |
| C) (915,560/97,400) | 9.40 |
Predetermined overhead rate = Estimated overhead /Estimated allocation base
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