Question 1 Jones Manufacturing Company makes two products. The company\'s budget

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Question 1 Jones Manufacturing Company makes two products. The company's budget includes $440,220 of overhead. In the past, the company allocated overhead based on estimated total direct labor hours of 19,140. Jones recently implemented an activity-based costing system and had determined that overhead can be broken into three overhead pools: processed purchase orders, machine setups, and good shipped. The following is a summary of company information: Estimated Cost Estimated Activities Orders processed Machine setups Shipping $86,720 5,420 orders 10,810 23,985 $121,515 470 machine hours 58,500 shipments Y (a) Calculate the company's overhead rate based on total direct hours The company's overhead rate per direct labor hour Click if you would like to Show Work for this question: Open Show Work Attempts: o of 1 used SAVE FOR LATER SUBMIT ANSWE

Explanation / Answer

CALCULATE THE OVERHEAD RATE ON THE BASIS OF DIRECT LABOUR HOURS Overhead rate per direct labour hours = Total Overhead Cost / Total Direct labour Hours Overhead rate per direct labour hours = Total Overhead Cost = $                 4,40,220 Divide By "/" By Total Direct Labour Hours = $                     19,140 Overhead rate per direct labour hours = 23.00 Answer = $ 23 Per Direct Labour Hours

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