Irmas Interiors uses a job order costing system to collect the costs of its inte

Question

Irmas Interiors uses a job order costing system to collect the costs of its interior decorating business. Each clients consultation is treated as a separate job. Overhead is applied to each job based on the number of decorator hours incurred. Listed below are data for the current year.

Budgeted overhead
$1,437,900 Actual overhead
$1,235,090 Budgeted decorator hours
47,930 Actual decorator hours
40,770
The company uses Operating Overhead in place of Manufacturing Overhead.
Compute the predetermined overhead rate.

Predetermined overhead rate
$ per decorator hour $ Irmas Interiors uses a job order costing system to collect the costs of its interior decorating business. Each clients consultation is treated as a separate job. Overhead is applied to each job based on the number of decorator hours incurred. Listed below are data for the current year.

Budgeted overhead
$1,437,900 Actual overhead
$1,235,090 Budgeted decorator hours
47,930 Actual decorator hours
40,770
The company uses Operating Overhead in place of Manufacturing Overhead.
Irma½s Interiors uses a job order costing system to collect the costs of its interior decorating business. Each client½s consultation is treated as a separate job. Overhead is applied to each job based on the number of decorator hours incurred. Listed below are data for the current year. Budgeted overhead $1,437,900 Actual overhead $1,235,090 Budgeted decorator hours 47,930 Actual decorator hours 40,770 The company uses Operating Overhead in place of Manufacturing Overhead. (a) Compute the predetermined overhead rate. Predetermined overhead rate $ per decorator hou

Explanation / Answer

=Budgeted overhead / Budgeted decorator hours

=$1,437,900/47,930=30

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.