The following information pertains to Trenton Glass Works for the year just ended. Budgeted direct-labor cost: 75,000
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Question:
The following information pertains to Trenton Glass Works for the year just ended.
Budgeted direct-labor cost: 75,000 hours (practical capacity) at $16 per hour
Actual direct-labor cost: 80,000 hours at $17.50 per hour
Budgeted manufacturing overhead: $997,500
Actual selling and administrative expenses: 431,000
| Actual manufacturing overhead: | |||
| Depreciation | $ | 232,000 | |
| Property taxes | 22,000 | ||
| Indirect labor | 81,000 | ||
| Supervisory salaries | 201,000 | ||
| Utilities | 58,000 | ||
| Insurance | 33,000 | ||
| Rental of space | 302,000 | ||
| Indirect material (see data below) | 77,000 | ||
| Indirect material: | |||
| Beginning inventory, January 1 | 47,000 | ||
| Purchases during the year | 94,000 | ||
| Ending inventory, December 31 | 64,000 | ||
Required:
1. Compute the firm’s predetermined overhead rate, which is based on direct-labor hours. (Round your answer to 2 decimal places.)
Expert Answer:
Answer To compute the firms predetermined overhead rate we need to use the following for... View the full answer
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