Search the web C q Search the web M Ch 17 Quiz Ch 17 Quiz Qu

Search the web... C q Search the web. M Ch 17 Quiz Ch 17 Quiz Question 7 (of 15) The following data relates to Spurrier Company\'s estimated amounts for next year Estimated Manufacturing overhead costs Direct labor hours Machine hours 1,100,000 540,000 DLH 90,000 MH $3,300,000 90000 DLH 24,000 MH What is the company\'s plantwide overhead rate if direct labor hours are the allocation base? Round to two decimal places) O $331 per direct labor hour O $343 per direct labor hour $2.04 per direct labor hour O $.30 per direct labor hour O $50 per direct labor hour

Solution

Plantwide overhead rate if direct labour hour are the allocation base Total manufacturing overheads Department 1 $1,100,000 Department 2 $3,300,000 Total manufacturing overheads $4,400,000 Total Direct labour hours Department 1           540,000 Department 2           790,000 Total Direct labour hours       1,330,000 Overhead rate ($4400000/1330000) 3.31 Overhead rate $3.31 per direct labour hour