Question

The Oakman Company manufactures products in two departments: Mixing and Packaging. The company allocates manufacturing overhead using a single plant-wide rate with direct labor hours as the allocation base. Estimated overhead costs for the year are $920,000, and estimated direct labor hours are 400,000. In October, the company incurred 55,000 direct labor hours.
Requirements
1. Compute the predetermined overhead allocation rate. Round to two decimal places.
2. Determine the amount of overhead allocated in October.


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  • CreatedJune 15, 2015
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