Bella, Inc. manufactures two kinds of bags-totes and satchels. The company allocates manufacturing overhead using a...

 

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Bella, Inc. manufactures two kinds of bags-totes and satchels. The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the allocation base. Estimated overhead costs for the year are $25,000. Additional estimated information is given below. Direct materials cost per unit Direct labor cost per unit Number of units Totes $33 $50 510 Satchels $41 $63 380 Calculate the predetermined overhead allocation rate. (Round your answer to two decimal places.) Bella, Inc. manufactures two kinds of bags-totes and satchels. The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the allocation base. Estimated overhead costs for the year are $25,000. Additional estimated information is given below. Direct materials cost per unit Direct labor cost per unit Number of units Totes $33 $50 510 Satchels $41 $63 380 Calculate the predetermined overhead allocation rate. (Round your answer to two decimal places.)

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To calculate the predetermined overhead allocation rate we need to divide the estimated overhead cos... View the full answer