Exercise 14-13 a-c Crane Decorating uses a job order cost system to collect the

Question

Exercise 14-13 a-c Crane Decorating uses a job order cost system to collect the costs of its interior decorating business. Each client's consultation is treated as a separate job. Overhead is applied to each job based on the number of decorator hours incurred Listed below are data for the current year. 960,000 Actual overheed Estimated decorator hours Actual decorator hours 0,000 40,000 The company uses Operating Overhead in place of Manufacturing Overhead ?Your answer is correct. Compute the predetermined overhead rate. (Round answer to 2 decimal places, e.g. 25.55 predetermined overhead rate per decorator hour Attempts: 1 of 5 used Determine the amount of overhead to apply for the year Amount of overhead applied

Explanation / Answer

14-13 a-c a) Predetermined Overhead rate                             24 =960000/40000 (Estimated cost/Estimated hours) b) Amount of overhead applied                960,000 =40000*24 (Actual hours *predetermined rate)

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