Homework: Chapter 7 Homework Score: 0 of 2 pts E17-27 (similar to) Save Hw Score

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Homework: Chapter 7 Homework Score: 0 of 2 pts E17-27 (similar to) Save Hw Score: 20% 2 of 10 pt Ju ? eabors, ? eal esta e cons ng m spec zes ?n a visrg companies potential new an s es. The compa y uses a ob order costr sys em w t ? pre ete EEB Cck thacon to viewr tha prapared budgatthe Ican to veww addltonal Inarmaon.j Rcad the me Requircment 1.Computc Juda Realtors (a) houry clrcc: labor co rat and (b) predstcrmined oerheadallocatn ratc. ned ove head alloca on rate. computed as percen age o drec abor costs. t he be n ng 0, managng pa ner an og Juda prepare the ract labr par hour nata Tahie 20 000 houts Direct labor cots (professional) S 2,300000 Supportsff salarie 1,175000 PrinDona

Explanation / Answer

(a) hourly direct labor cost rate

(b) predetermined overhead allocation rate

Total overheads = $350000 + $1175000 + $430000 = $1955000

Direct labor costs / Direct labor hours = Direct labor cost rate 2300000 / 20000 = 115 per hour

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