Dragon Fire Hot Sauce makes two types of hot sauces: mild and mild. The budgeted information for
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Question:
Dragon Fire Hot Sauce makes two types of hot sauces: mild and mild. The budgeted information for the two flavors appears below:
Meek :
Sales $600,000
Direct Materials $100,000
Direct labor cost $108,000
Cost per hour of labor $12.00
take :
Sales $400,000
Direct Materials $120,000
Direct labor cost $ 180,000
Cost per hour of labor $12.00
The company estimates that it will incur $345,600 in overhead costs for the period. Dragon Fire assigns overhead costs to products based on the labor hours worked on each product. What is the overhead application rate to be used when Meek is assigned?
Related Book For
Managerial Accounting for Managers
ISBN: 978-1259578540
4th edition
Authors: Eric Noreen, Peter Brewer, Ray Garrison
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