Capalbo Corporation bases its predetermined overhead rate on the estimated labor
ID: 2479549 • Letter: C
Question
Capalbo Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. At the beginning of the most recently completed year, the company estimated the labor-hours for the upcoming year at 67,000 labor-hours. The estimated variable manufacturing overhead was $2.93 per labor-hour and the estimated total fixed manufacturing overhead was $2,092,360. The actual labor-hours for the year turned out to be 67,500 labor-hours. The predetermined overhead rate for the recently completed year was closest to:
Explanation / Answer
SOLUTION :
estimated variable manufacturing overhead(2.93*67000)
196310
total fixed manufacturing overhead
2092360
TOTAL
2288670
ESTIMATED LABOUR HOURS
67000
predetermined overhead rate (2288670/67000)
34.16
estimated variable manufacturing overhead(2.93*67000)
196310
total fixed manufacturing overhead
2092360
TOTAL
2288670
ESTIMATED LABOUR HOURS
67000
predetermined overhead rate (2288670/67000)
34.16
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