Foster Enterprises makes custom-order draperies. In late 2013, when managers prepared the budget for 2014, they...

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Foster Enterprises makes custom-order draperies. In late 2013, when managers prepared the budget for 2014, they estimated that manufacturing overhead would total $136,710. Because the production process is labor intensive, overhead is allocated to jobs based on direct labor hours. Managers expected total direct labor hours to amount to 441,000 hours. During March and April of 2014, employees worked on only three jobs. Relevant information for each job follows: Monthly Data Recorded Job 76 Job 77 Job 78 March Direct materials cost $13,011 Direct labor cost $36,131 Direct labor hours 3,856 April Direct materials cost $0 $10,975 $6,363 Direct labor cost $9,913 $22,934 $2,888 Direct labor hours 1,072 2,592 402 Job 76 was started in March, finished in April, and delivered to the customer in the same month. Job 77 was started in April, finished in April, and delivered to the customer in May. Job 78 was started in April and finished in May. (a) Your Answer Correct Answer (Used) X Your answer is incorrect. What predetermined overhead rate will the company use for all jobs worked on during 2014? (Round Overhead rate to 2 decimal places, eg. 15.25.) Overhead rate 0.31 /DLH Solution Assistance Used $105,000 $0.25/DLH 420,000DLH %24 Foster Enterprises makes custom-order draperies. In late 2013, when managers prepared the budget for 2014, they estimated that manufacturing overhead would total $136,710. Because the production process is labor intensive, overhead is allocated to jobs based on direct labor hours. Managers expected total direct labor hours to amount to 441,000 hours. During March and April of 2014, employees worked on only three jobs. Relevant information for each job follows: Monthly Data Recorded Job 76 Job 77 Job 78 March Direct materials cost $13,011 Direct labor cost $36,131 Direct labor hours 3,856 April Direct materials cost $0 $10,975 $6,363 Direct labor cost $9,913 $22,934 $2,888 Direct labor hours 1,072 2,592 402 Job 76 was started in March, finished in April, and delivered to the customer in the same month. Job 77 was started in April, finished in April, and delivered to the customer in May. Job 78 was started in April and finished in May. (a) Your Answer Correct Answer (Used) X Your answer is incorrect. What predetermined overhead rate will the company use for all jobs worked on during 2014? (Round Overhead rate to 2 decimal places, eg. 15.25.) Overhead rate 0.31 /DLH Solution Assistance Used $105,000 $0.25/DLH 420,000DLH %24

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a Predetermined Overhead Rate 031DLH Predeterm... View the full answer