At the beginning of the year, Ilberg Company estimated the following costs: Overhead .......... $416,000 Direct labor
Question:
Overhead .......... $416,000
Direct labor cost ........520,000
Ilberg uses normal costing and applies overhead on the basis of direct labor cost. (Direct labor cost is equal to total direct labor hours worked multiplied by the wage rate.) For the month of December, direct labor cost was $43,700.
Required:
1. Calculate the predetermined overhead rate for the year.
2. Calculate the overhead applied to production in December.
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Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
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