Dallas Company uses a job order costing system. The company\'s executives estima
ID: 2512467 • Letter: D
Question
Dallas Company uses a job order costing system. The company's executives estimated that direct labor would be $2,000,000 (200,000 hours at $10/hour) and that factory overhead would be $1,500,000 for the current period. At the end of the period, the records show that there had been 180,000 hours of direct labor and $1,200.000 of actual overhead costs. Using direct labor hours as a base, what was the predetermined overhead rate? Multiple Choice $6.00 per direct labor hour $750 per direct labor $6.67 per direct labor hour $8.33 per direct labor hour $708 per direct labor Prev 1 of 10 NextExplanation / Answer
1) B- $7.5 per direct labour
Calculation- Overhead rate= $15,00,000/2,00,000 hours
= $7.5 per direct labour hour
2) D - product assembler wages
3) C- work in process inventory, finished good inventory and cost of good sold
4) A- job order costing
5) B- $22,500
Calculation - RM $3000 + DL $6500 + OH ($6500×200%)
= $22,500
Work in process contain the sum of the cost on job cost sheets for jobs that are not yet complete.
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