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Jones Manufacturing Company makes two products. The company\'s budget includes S

ID: 2491219 • Letter: J

Question

Jones Manufacturing Company makes two products. The company's budget includes S440,220 of overhead. In the past, the company allocated overhead based on estimated total direct labor hours of 19,140. Jones recently implemented an activity-based costing system determined that overhead can be broken into three overhead pools: processed purchase orders, machine setups, and good shipped. The following is a summary of company information: Calculate the company's overhead rate based on total direct hours. The company's overhead rate dollar____________per direct labor hour By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor.

Explanation / Answer

company's budgeted overhead = $440220

Budgeted estimated Direct Labor Hours = 19140 hours

The company's overhead rate = $ (440220 / 19140) = $23 per DLH