Red Deer Open Mike produces electronic components for microphones. They compute their plantwide predetermined overhead rate...
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Red Deer Open Mike produces electronic components for microphones. They compute their plantwide predetermined overhead rate each year based on direct labor[1]hours. At the beginning of the year, it estimated 30,000 direct labor-hours would be required for the period's estimated level of production. The company also estimated $94,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $2.00 per direct labor[1]hour. Red Deer Open Mikes actual manufacturing overhead cost for the year was $123,900 and its actual total direct labor was 21,000 hours. Required: Compute the company's plantwide predetermined overhead rate. Red Deer Open Mike produces electronic components for microphones. They compute their plantwide predetermined overhead rate each year based on direct labor[1]hours. At the beginning of the year, it estimated 30,000 direct labor-hours would be required for the period's estimated level of production. The company also estimated $94,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $2.00 per direct labor[1]hour. Red Deer Open Mikes actual manufacturing overhead cost for the year was $123,900 and its actual total direct labor was 21,000 hours. Required: Compute the company's plantwide predetermined overhead rate.
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Related Book For
Cornerstones of Cost Management
ISBN: 978-1285751788
3rd edition
Authors: Don R. Hansen, Maryanne M. Mowen
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