Hunnie Chocolate Bar Inc. estimates its factory overhead for the next period at P1,000,000. It is...
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Hunnie Chocolate Bar Inc. estimates its factory overhead for the next period at P1,000,000. It is estimated that 20,000 units will be produced and it will require 50,000 direct labor hours at an estimated cost of P500,000. The machines will run about 160,000 hours. At the end of the period, actual overhead cost amounted to P1,100,000 and actual direct labor hours is 52,000. What is the predetermined OH Rate if company uses plant-wide rate based on direct labor hours? Hunnie Chocolate Bar Inc. estimates its factory overhead for the next period at P1,000,000. It is estimated that 20,000 units will be produced and it will require 50,000 direct labor hours at an estimated cost of P500,000. The machines will run about 160,000 hours. At the end of the period, actual overhead cost amounted to P1,100,000 and actual direct labor hours is 52,000. What is the predetermined OH Rate if company uses plant-wide rate based on direct labor hours?
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To calculate the predetermined overhead rate we need to divide the estimated factory overhead by ... View the full answer
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
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