Hidden Leaf Company currently uses a plantwide overhead application based on expected direct labor hours to...

 

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Hidden Leaf Company currently uses a plantwide overhead application based on expected direct labor hours to be used. The following information is anticipated at the beginning of the year. Department Ge Department K. Direct materials 17,000 Direct labor hours Machine hours 10,000 Overhead 85,000 Direct Labor costs 37.50/h Actual production, 25,000 units P 13.33/ DLH P 20/ DLH 5,000 P 16.67/ MH P 14.98 P 25,000 10,000 2,000 P 115,000 P37.50/h If the firm maintains the current method, what will be the overhead application rate? P ס P Hidden Leaf Company currently uses a plantwide overhead application based on expected direct labor hours to be used. The following information is anticipated at the beginning of the year. Department Ge Department K. Direct materials 17,000 Direct labor hours Machine hours 10,000 Overhead 85,000 Direct Labor costs 37.50/h Actual production, 25,000 units P 13.33/ DLH P 20/ DLH 5,000 P 16.67/ MH P 14.98 P 25,000 10,000 2,000 P 115,000 P37.50/h If the firm maintains the current method, what will be the overhead application rate? P ס P

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Overhead Application rate under current metho... View the full answer