Hello Im really having problems with this exercise The answe

Hello, I\'m really having problems with this exercise. The answer that I get is wrong, can someone please tell me how to do it right?

Thanks in advance

Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on the basis of direct labor dollars. At the beginning of the most recent period, the company estimated its total direct labor cost to be $52,500 and its total manufacturing overhead cost to be $105,000 Several incomplete general ledger accounts show the transactions that occurred during the most recent accounting period which is given in second requirement. Required: 1. Calculate the predetermined overhead rate 2: % of Direct Labor Cost

Solution

Predetermined overhead rate=(Total manufacturing overhead/Total direct labor cost)

which is equal to

=(105000/52500)

=200% of Direct Labor Cost.