Question

The Osborne Company manufactures products in two departments: Mixing and Packaging. The company allocates manufacturing overhead using a single plantwide rate with direct labor hours as the allocation base. Estimated overhead costs for the year are $ 650,000, and estimated direct labor hours are 300,000. In October, the company incurred 25,000 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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  • CreatedJanuary 16, 2015
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