contestada

Helio Company has two products: A and B. The annual production and sales of Product A is 1,850 units and of Product B is 1,250 units. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. Product A requires 0.3 direct labor-hours per unit and Product B requires 0.6 direct labor-hours per unit. The total estimated overhead for the next period is $100,485.
What is the company’s predetermined overhead rate?

Respuesta :

Answer:

$77 per direct labor-hour

Explanation:

Direct labor-hours for Product A

= 1,850 Units × 0.3 direct labor-hours per unit

= 555 direct labor-hours

Direct labor-hours for Product B

= 1,250 units × 0.6 direct labor-hours

= 750 direct labor-hours

Total direct labor-hours = 555 + 750

= 1305 direct labor-hours

Now,

Predetermined overhead rate

=  Total estimated overhead for next period ÷ Direct labor-hours

= $100,485 ÷ 1305 direct labor-hours

= $77 per direct labor-hour

Otras preguntas