The manufacturer estimates it will incur variable indirect costs of $70,000 and fixed costs of $30,000 for October. The company uses direct working hours to calculate the predetermined overhead rate and estimates that 3,000 direct working hours will be used in October. Actual direct working hours amounted to 3,200.

Required

1) What is the allocation rate per direct labor hour in October?

2) What is the total cost allocation for October?

Answer rating: 100% (QA)

1 To calculate the allocation rate per direct labor hour we divide the total ... View the full answer