Assume a manufacturer incurs 2,000,000 hours of direct productive labor in a year at a total direct
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Question:
a. What is the average direct labor hour rate?
b. If the overhead were distributed on the basis of direct labor hours, what would the rate be per hour?
c. If the overhead were distributed on the basis of direct labor dollars, what would the percentage rate be?
Direct Labor Direct Labor
Hour Method Dollar Method
Project A $_____________ $____________
Project B $_____________ $____________
Related Book For
Managerial Accounting Creating Value in a Dynamic Business Environment
ISBN: 978-0078110917
9th edition
Authors: Ronald W. Hilton
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