ring Company makes two products. The company\'s budget indludes $463,500 of over

Question

ring Company makes two products. The company's budget indludes $463,500 of overtead. In the past, the company alocated overtead based on estimated total drect labor hours of 18,540. Jones recently edi in iti mrt red ostn, intem and had determned that oerhead an be boken into tre. owerhead pools: processed purchase orders, machine seles, and good roped. The folowing s?summary of company marmi 160 4,940 orders 11,280 470 machine hours 32,820 54,700 shipments Machine setups Shipping $113,260 y (a) Calculate the company's overhead rate based on totai direct hours. The company's overhead rate $ Click it you would like to Show Work for this questioni Open Show Work per direct labor hour 26

Explanation / Answer

CALCULATE THE OVERHEAD RATE ON THE BASIS OF DIRECT LABOUR HOURS Overhead rate per direct labour hours = Total Overhead Cost / Total Direct labour Hours Overhead rate per direct labour hours = Total Overhead Cost = $                 4,63,500 Divide By "/" By Total Direct Labour Hours = $                     18,540 Overhead rate per direct labour hours = 25.00 Answer = $ 25 Per Direct Labour Hours

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